Decree Law Regarding Tax Withholding Applicable to Corporate Earnings and Dividends Distributed to Shareholders

Dear Member,

In the Official Gazette No. 144 dated July 31, 2026, numbered 88/2026, “Decree Having the Force of Law Concerning the Tax Deduction to be Applied to Corporate Earnings Not Distributed Until December 31, 2025 and Dividends Distributed to Shareholders” was published, with the 7.5% tax to be applied if the profits accumulated but not distributed in the balance sheets until December 31, 2025 are distributed to real person shareholders. application and payment procedures have been regulated.

Taxpayers wishing to benefit from the decree must apply to the Revenue and Tax Office within 15 days following the date of its publication.

It is stated that the relevant Decree Law entered into force on the date of its publication in the Official Gazette.

Please click here for the relevant Decree Law.

Best regards

Turkish Cypriot Chamber of Commerce