Deduction of Withholding Tax on Real Estate and Venture Capital Investment Funds

With the Decision of the President of the Republic published in the Official Gazette dated 23.12.2020 and numbered 31343, some changes have been made regarding the withholding rates for real estate and venture capital investment funds. According to this decree, between the dates of March 31, 23 December 2021 2020 real person in real estate or venture capital investment fund shares to be purchased by our customers at any time of the disposal of the income to be obtained during the 0% withholding tax will apply. While the trading return obtained from the participation shares for our individual investors before the decision is subject to a 10% withholding tax, it has been decided to apply a 0% withholding tax on the purchased shares until March 31. this period has been extended until 30.09.2021 with the Decision of the President of the Republic of Turkey dated 30.07.2021 dated 4311.

  By the end of 2020, real estate investment funds amounted to 8.5 billion TL, TL 3.3 billion in venture capital investment funds in the sector, have highlighted the rapid growth and development. We assume that with the application made by the Presidency, the interest of qualified investors in alternative investment funds will increase. In addition to the existing tax advantages in both real estate investment funds and venture capital investment funds, the fact that the withholding tax is 0% for individual investors certainly makes October investment funds in a more attractive position, we cannot deny. 

Ece Şahin - Business Development and Investor Relations Specialist