Current Situation in Housing Tenancy Tax

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According to the Income Tax Law (GVK); the share of lump-sum payments is reduced from 25% to 15%, and the rate of third-party share increases from 27% to 30%. In both embodiments; those of the rent incentive will lead to the payment of excess tax from the state. 2 separate taxes were calculated for 15 different monthly-year rental income:

First; according to the current legislation, the taxation system, which is regulated according to the changes in the second bill. For this reason, households can see from this table how much tax they will pay for rent income as a result of the law's design.


Because of the increase in the income tax number (from 27 percent to 30 percent), only the rent income tax base of 30,000 liras per year will be affected. In other words, the tax base for annual rental income will be 27% tax for those who have passed 30 thousand lirai – 70 thousand liras, and the rate they will pay with the new design will be 30%.

Those who earn up to 3,900 liras during the year 2017 will not give a declaration. For this reason they will not pay taxes either. Those who have more than 3,900 liras will give a statement. (GVK, Art.21)

This exemption, which is determined every year, is 3,800 liras for the gain of 2016 and 3,900 liras for the 2017 revenues. (General Guidance No. 296)


– How much will the tax I will pay decrease?

If you want to make a simple calculation as follows: First, the exception (3,900 liras) and 15 percent (according to the draft law) is taken from the annual rental income, taxes are being calculated. The trip is gone; 15% of the exempted rental income of 3.900 liras is deducted directly from the rent income (no certification required) and is calculated above the remaining figure. Taxpayers who will give a declaration can choose one of two different expense methods; 'Expense' or 'expense' (GVK Article 74).

– How much will the tax payable be reduced to 'real expenses'?

The people who choose the real return can calculate the tax on the remaining figure by deducting the actual expenses from the certificate after 3,900 TL exemption before the annual rent. The point that differs according to the way it goes, the expenses must be paperwork.

– How is the real expense method advantageous?

By the time the bill goes into effect, households with more real estate can afford a little less tax by choosing the actual expense method. However, while the expense can be calculated as undocumented, the actual expenses are examined in the form of a documented tax credit. These documents need to be kept for five years and, if necessary, shown on the audit. (Must be kept for the rental income of 2017 until the end of 2022)

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