Withholding Tax

Tax & Turkey

Tax taken out by the payer at the moment income is paid and passed on to the tax authority, so the investor receives the net amount.

With US stocks it is withheld from dividends: for a Turkish resident who has filed a W-8BEN the rate on portfolio dividends is 20%, and 30% without the form. The US generally does not withhold tax on stock sale gains of investors who are not US residents. Rates and thresholds can change; check with a tax adviser.

Example

If you own 100 shares of a company paying a $1 dividend per share, with a W-8BEN $20 is withheld and $80 reaches your account.

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