Türkiye's Treasury and Finance Ministry has completed its assessment and preliminary work on measures aimed at redirecting short-term capital flows concentrated in money market funds toward longer-term and productive investments, a report said Tuesday.
The ministry is reportedly preparing to impose a 10% withholding tax on gains earned by corporate investors from money market funds, the report by private broadcaster Bloomberg HT said, citing sources familiar with the matter.
The move would form part of the government's efforts to limit the risks associated with short-term capital inflows and encourage capital to remain in Türkiye for longer periods and contribute more directly to investment and production.
According to the report, the proposed measure would apply to gains from money market funds earned by both resident Turkish corporate taxpayers and nonresident corporate taxpayers.
Turkish taxpayers would reportedly be able to offset the withholding tax against their provisional corporate tax liabilities. For foreign corporate investors, however, the withholding tax would serve as the final tax, the report said.
