REAL ESTATE INVESTMENT FUNDS
Real persons: If a real estate fund participation share is returned to the relevant real estate fund, it will be subject to 0% tax, if it is sold to a third party, it will be subject to 10% tax. This tax is withheld at the time of transaction and therefore will not be declared on a tax return. In case of legal person investors, the same taxation procedure as the securities investment funds will apply.
PROFIT SHARES FROM SECURITIES INVESTMENT FUND PARTICIPATION CERTIFICATES
Profits made from participation certificates of investment funds minimum 51% of which consists of share certificates traded in in Istanbul Stock Exchange (BIST) on a continuous basis after holding those participation shares for more than one year are not subject to withholding tax. Real person investors do not have to declare such profits in their tax returns. Profits made from participation certificates of investments funds minimum 80% of which consists of share certificates (except for Securities Investment Partnership (MKYO) share certificates) traded in Istanbul Stock Exchange (BIST) in monthly average basis are subject to 0% withholding tax. Profits made from participation certificates of all other investment funds are subject to 10% withholding tax. Withholding tax is not subject to declaration in tax returns.
Profit shares earned by foreign joint stock, limited and commandite companies and by foreign entities which the Ministry of Finance considers similar to an investment fund or investment partnership defined in the Capital Market Law are subject to 0% withholding tax.
Withholding tax is not subject to declaration in tax returns.
Profits made by limited taxpayer legal persons other the ones described above from participation certificates of investment funds minimum 51% of which consists of share certificates traded in in Istanbul Stock Exchange (BIST) on a continuous basis after holding those participation shares for more than one year are not subject to withholding tax.
Profits made by limited taxpayer legal persons other the ones described above from participation certificates of investments funds minimum 80% of which consists of share certificates (except for Securities Investment Partnership (MKYO) share certificates) traded in Istanbul Stock Exchange (BIST) in monthly average basis are subject to 0% withholding tax.
Profits made from participation certificates of all other investment funds are subject to 10% withholding tax.
Such taxpayers who are obliged to file tax returns are entitled to set off the withholding tax they paid against the corporate tax incurring for them.
The same procedure as the full taxpayer real person will apply.