The Law on Amendments to the Income Tax Code published in the Official Gazette on June 27, 2006 that came into effect on October 1, 2006 made changes to the taxation structure of investment funds, making all fund participation certificates subject to withholding tax. As of October 1, 2006, upon the return of participation certificates of securities investment funds established under the Capital Market Law, the gains of the investor as calculated by the "First In First Out" (FIFO) method are subject to a withholding tax of 10%.
In addition, alienated participation certificates held for a year or more pertaining to funds of which more than 51% has continuously consisted of shares traded on the Istanbul Stock Exchange are not subject to withholding tax.
Owing to its bylaws our İMKB National 30 Indexed Fund portfolio comprises a minimum of 80% shares, therefore investors who maintain their participation in the fund for more than a year will not have their gains subjected to withholding tax. Where our other A type fund portfolios comprise 51% or more Istanbul Stock Exchange traded shares the same shall apply.
A document detailing the withholding tax deductions payable for investment fund participation certificates sold or purchased after October 1, 2006 will be provided to our investors on demand through our branches.
As of October 1, 2010, the withholding tax payable by capital companies (joint stock, limited partnerships divided into shares established under the TCC and foreign corporations of a similar nature) within the scope of the Corporate Tax Law No. 5520, article 2, subsection 1, has been set at 0%.
