As explained in our Legal Newsletter Q3/2010, the amendment of Temporary Article 67 by Law No. 6009 (published in the Official Gazette dated 1 August 2010 and numbered 27659) (“Law No. 6009”) authorised the Council of Ministers to specify rates to be applied on specific types of security and related gains. Following the amendment, the Council of Ministers was expected to clarify rates to be applied on the basis of specific securities and investors (e.g. non-resident/resident banks, mutual funds, etc.). However, the Decree No. 2010/926 issued by the Council of Ministers on 27 September 2010 (published in the Official Gazette dated 30 September 2010 and numbered 27715) (“Decree No. 2010/926”) failed to provide much depth to the current legislation by repeating, to a large extent, the existing wording of Temporary Article 67.

The inclusion of warrants among instruments that will benefit from 0% withholding (previously, the Tax Revenue’s view was that a 10% withholding should be applied to income Turkish residents derived from such warrants) could be pointed to as one of the few significant specifications introduced by Decree No.2010/926.