There is no limitation for repatriation of profits unless the company is monitored by an upper supervisory body (such as the Capital Market Board or the Banking Regulatory and Supervisory Board), whose approval is required.
After paying a 20% corporate tax, there is a 15% dividend withholding tax if the profit is distributed to local natural persons or foreign natural/legal persons.
Under the Turkish tax system, all taxable entities are subject to the same dividend withholding tax rate, which is 15% and is applied to profits after taxation. Favorable dividend withholding tax rates exist due to Turkey's Double Taxation Treaties.
Turkey has around 70 Double Taxation Treaties (DTT) signed with many countries. Therefore if the DTT dividend withholding tax rate is lower than the generic 15% rate, the DTT rate may apply.
Foreign investors are free to transfer dividends to abroad in accordance with the Foreign Direct Investment Law. However, the Turkish Commercial Code legal reserve requirements must also be met.
There are no restrictions with respect to dividend payments under the Foreign Exchange legislation, but the dividend withholding tax has to be paid before repatriation. This will be checked by the banks used for the transfer.
