Private Pensions to Charge 15% Withholding Tax, Milliyet Reports

Private pension companies will charge a 15 percent withholding tax on returns, instead of capital, from people who leave the plan before 10 years, Milliyet newspaper reported, citing a decree published in the Official Gazette yesterday.

According to the decree, people leaving the plan after 10 years but before retirement will pay 10 percent withholding tax and those who retire will pay 5 percent tax, Milliyet said. The new legislation was part of a law the government recently implemented to increase Turkey’s savings rate, the Istanbul- based newspaper said.

To contact the reporter on this story: Sibel Akbay in Istanbul at sakbay@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.