1- ARE STOCK EXCHANGE SECURITIES IN ISTANBUL STOCK EXCHANGE SUBJECT TO INCOME TAX?
The incomes of real persons, who buy and sell stock exchange securities in Istanbul stock exchange and make a profit from those transactions, are not subject to income tax.
2- ARE STOCK EXCHANGE SECURITIES IN ISTANBUL STOCK EXCHANGE SUBJECT TO WITHHOLDING?
No. Profits gained from stock exchange securities are not subject to income tax withholding.
3- THEY ARE SUBJECT TO WITHHOLDING, BUT THE RATIO IS ZERO SO IT IS REGARDED THAT THERE IS NO WITHHOLDING ACTUALLY.
The gains received through stock exchange securities are subject to tax according to provisional article 67 of the Income Tax Law. With the Cabinet Decision dated 27.4.2012 and numbered 2012/3141, withholding rate applied to future delivery and option contracts, based on stock exchange securities and share index by fully responsibles and limited taxpayers within the scope of provisional article 67, stock exchange securities including covered warrant in Istanbul stock exchange (excluding stock exchange securities of securities investment associations), gains received through stock funds participation certificate is determined as 0%. Consequently, withholding is not applied actually, because withholding rate is “0”.
4- VALUE INCREMENT GAINS ARE NOT SUBJECT TO INCOME TAX.
Furthermore, it belongs to fully responsible, gains received by selling stock exchange securities (kept more than one year and be traded at the exchange) out are not subject to withholding. There is no need to file annual income tax return as increment value tax because duplicated entry 80 of the Income Tax Law will not be applied to these gains
Consequently, there is no need to pay taxes for gains received through buying and selling of stock exchange securities in Istanbul stock exchange.
Source: Provisional article 67 added to article 30 of the Income Tax Law No. 5281
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