TR

Withholding Tax Rate Reduced to 1% for Nuclear Power Plant Construction and Maintenance Works

25 May 2026
This tax alert summarizes the amendments introduced by the Presidential Decree No. 11344 published in the Official Gazette dated 19 May 2026 regarding the withholding tax (“WHT”) applicable to payments made within the scope of nuclear power plant (“NPP”) construction and maintenance works.

KEY HIGHLIGHTS

  • Under the Turkish tax legislation, cash or on-account payments (including advance payments) made in relation to multiyear construction and maintenance works are generally subject to withholding tax at the rate of 5%.
  • With the new Decree, the applicable WHT rate for payments made in relation to nuclear power plant construction and maintenance works has been reduced from 5% to 1%.
  • The reduced WHT rate has been introduced under:
    • Article 94 of the Income Tax Code
    • Article 15 of the Corporate Income Tax Code, and
    • Article 30 of the Corporate Income Tax Code
    kapsamındaki stopaj oranlarına ilişkin Bakanlar Kurulu Kararlarında yapılan değişikliklerle yürürlüğe girmiştir.
  • The new WHT rate will apply to payments made on or after 1 June 2026.
  • The regulation is expected to be particularly relevant for contractors, subcontractors and project owners involved in nuclear power plant investments in Türkiye.

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