Türkiye has reduced the withholding tax rate on payments related to nuclear power plant construction and repair works to ease financing pressures and accelerate strategic energy investments.
The decision, announced by a decree published in the Official Gazette Tuesday, sets the withholding rate on progress payments for contractors in nuclear projects at 1%, bringing them in line with preferential rates already applied to selected transport infrastructure projects such as railways, metros, tramways, and shipbuilding and repair works.
The change is part of a policy framework designed to support high-capital, long-term infrastructure investments and strengthen energy security.
Previously, a separate decree issued in March 2025 had already reduced withholding taxes to 1% for strategic transport projects, while maintaining a 5% rate for other long-term construction and repair works.
The latest amendment extends similar treatment to nuclear energy projects, described as capital-intensive and critical for diversifying energy supply and reducing external dependency.
