Under Article 5/1-a of the Corporate Tax Law, dividends received from fully taxable companies are exempt from corporate income tax; apart from certain exceptions such as investment funds, no minimum holding or holding period is required. For dividends from foreign participations, there are holding percentage, holding period and tax burden conditions.
Source: Corporate Tax Law No. 5520 Art. 5
Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.AssociateAn entity over which the investor has significant influence but not control or joint control.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.
Last updated: October 22, 2026 · This definition is for general information only.