Sending dividends abroad from a Turkish Ltd. or A.Ş.: decision, withholding and bank documents
A foreign shareholder cannot simply be paid out of a Turkish company’s bank account. The shareholders must decide on the distribution, withholding tax is deducted, a treaty may reduce it, and the bank reviews the transfer. This guide describes each step and the documents involved, as of 5 November 2026. It is descriptive only: consult your SMMM or YMM for your own numbers.
Step one: the shareholders’ decision
Dividends leave a Turkish company only after the owners decide. In an A.Ş. the general assembly (genel kurul) approves the financial statements and the profit distribution; in a Ltd. Şti. the shareholders’ meeting (ortaklar kurulu) does so. The minutes should state the profit year, the total amount and each shareholder’s share, matching the share register.
The Turkish Commercial Code (Law No. 6102) allows a distribution only from profit left after prior-year losses are covered and mandatory reserves are set aside. Under Article 519 the general legal reserve takes a part of annual profit until it reaches a set share of capital. The articles of association may add further conditions.
- Approved balance sheet with positive distributable profit
- Signed minutes naming each recipient
- Reserves and loss offsets already applied
The withholding rate
Dividends carry withholding tax (stopaj). Presidential Decision No. 9286, published on 22 December 2024, raised the rate from 10% to 15% for dividends distributed from that date. It covers dividends paid by resident companies to non-resident corporations and individuals (Income Tax Law Art. 94, Corporate Tax Law Arts. 15 and 30).
For non-resident shareholders this withholding is generally the final tax, while dividends received through a branch or permanent representative in Türkiye are treated differently. We found no later change up to 5 November 2026; ask your SMMM to confirm the figure before approving a distribution.
Rates and rules can change by Presidential decision, so the figure in the minutes should always match the rate in force on the day of payment. Keep a note of the decision number and the date you checked it in the file for your accountant.
| Recipient | Domestic rate |
|---|---|
| Non-resident corporation | 15% |
| Non-resident individual | 15% |
Treaty relief and the residence certificate
Türkiye has double tax treaties with many countries, and a treaty may set a lower dividend rate than the domestic 15%. The rate depends on the country, the size of the holding and whether the recipient is the beneficial owner. The treaty list is published by the Revenue Administration (gib.gov.tr) and the Ministry of Treasury and Finance (hmb.gov.tr).
To apply a treaty, the company normally needs a certificate of residence (mukimlik belgesi) from the foreign tax authority for the relevant year, usually with a Turkish translation and sometimes an apostille. Without it the domestic rate is applied, and a later refund may need a separate procedure.
- Read the treaty article on dividends
- Obtain the certificate before payment
- Agree the rate with your SMMM in writing
Timing: payment, return and deadline
Withholding arises when the dividend is paid in cash or credited to the shareholder’s account (nakden veya hesaben). The resolution alone does not trigger it, but a credit to the shareholder’s current account can, so the rate depends on the payment date, not the date of the meeting.
The tax withheld is reported on the monthly withholding return (muhtasar ve prim hizmet beyannamesi). According to the consolidated guides we checked, it is filed and paid by the 26th of the following month; confirm the date for your filing frequency with your SMMM.
If a shareholder asks for an advance, or the money is booked to an account before the formal payment, tell your accountant at once, because the booking date may fix the rate and the return month. Consistent dates across minutes, ledger and bank statement avoid later questions.
- Meeting decision
- Payment or credit to the shareholder
- Muhtasar return and payment by the 26th of the next month
- Keep the accrual slip for the bank
The bank file and Decree 32
Decree 32 is the general framework for foreign exchange in Türkiye; our Decree 32 guide explains it. For the transfer itself, the bank applies its own compliance review and must understand why the money leaves and to whom. Requirements differ by bank, so ask for the list in advance.
A typical file is listed below. Names on every document should match the passport or charter exactly; if a name is spelled differently, add a short explanatory note. The bank may still ask for more, and the transfer is its decision alone.
- Shareholders’ decision on the distribution
- Approved financial statements
- Muhtasar return, accrual slip and proof of payment
- Shareholder’s passport or charter and registry extract
- Residence certificate, if a treaty rate is used
- SWIFT, IBAN and beneficiary details
Sources
- mevzuat.gov.tr — Corporate Tax Law No. 5520 (Arts. 15, 30), Income Tax Law No. 193 (Art. 94), Turkish Commercial Code No. 6102
- gib.gov.tr — Revenue Administration note on Presidential Decision No. 9286 (dividend withholding 10% to 15%, Official Gazette 22.12.2024)
- gib.gov.tr — Revenue Administration: list of double tax treaties and withholding return guides
- hmb.gov.tr — Ministry of Treasury and Finance: double tax treaty texts
- alomaliye.com — consolidated commentary used to cross-check the 26th-of-month muhtasar deadline and payment-date rule (secondary copy; mevzuat.gov.tr blocks automated access)
Questions
What is the withholding rate on dividends to a foreign shareholder?
The domestic rate is 15% under Presidential Decision No. 9286, in force since 22 December 2024. We found no later change up to 5 November 2026; confirm with your SMMM.
Can a treaty reduce the rate?
It may. The treaty rate depends on the country and the shareholding, and normally requires a residence certificate (mukimlik belgesi). Without it the domestic rate applies.
When is the withholding return due?
According to the consolidated guides we checked, the muhtasar return is filed and paid by the 26th of the month following the payment. Confirm with your SMMM.
Can a company pay a dividend if it has past losses?
Under the Commercial Code a distribution is made only from profit remaining after prior losses and mandatory reserves, so check this before the meeting.
Does ROSTU file the return or send the money?
No. We organise documents and accompany you to the bank. The return is filed by your accountant and the bank decides on the transfer.