What is the Rental Income Tax and When it's Paid?
What is the Rental Income Tax and When it's Paid?

What is the Rental Income Tax and When it's Paid?

In Turkey rental income tax is paid according to your statement and also calculations is should be done by you. Rental income tax payment is paid with two installments, first is on March and second one is on July. The most important and hard part of the rental income tax is making the right calculation by choosing the right method. Flatix has public accountant within its organization and does not charge extra fee for this service for its members. Please find the detailed explanations below;

Income Tax: This tax has been collected by central government from the people who obtain rental incomes from their flats for previous year. The declaration has to be calculated and made by flat owner himself. The steps of process:

·         Step One: We are preparing one declaration for each person separately. In each declaration we are writing each flat from which we are having a rental income with address details and address code registered in the system.

·         Step Two: We are writing all total rental incomes from each flat for previous year. Let’s suppose that we have rented 5 different flats owned by one person in 2016. For each flat we are writing our total rental incomes during the year and summing up all rental incomes at the end of our declaration. Let’s suppose that our total 2016 income for our five flats is 59.500 TL.

·         Step Three: After calculating total amount received from flats; we will decrease 3.800 TL from this amount as an exception given by state. We will deduct 3.800 TL as an exception from 59.500 TL. Remaining amount is 55.700 TL. (Please note down that this exception amount changes every year and if annual total rental income for one person is more than 110.000 TL you cannot deduct exception amount as per Turkish Law.)

·         Step Four: After we deduct this exception amount we will calculate our expenses for deduction. As an expense we could deduct 15 percent for our related expense for the flat without showing any documents.  15 % of our five apartments annual rental income after exception is 8.355 TL (55.700 TL*15/100). We will decrease this amount from our income after exception (55.700 TL – 8.355 TL= 47.345 TL). 47.345 Turkish Liras is our net income subject to tax.

·         Step Five: After calculating our net income subject to tax we will calculate tax amount. Our income tax law has different tax rates increasing with the income. You can see tax rates below:



Annual Rent

Tax Rate

Up To 12.600 TL

15%

12.600 TL - 30.000 TL

1.890 TL for the first 12.600 TL + %20 for remaining

30.000 TL - 69.000 TL

5.370 TL for the first 30.000 TL + %27 for remaining

69.000 TL+

15.900 TL for the first 69.000 TL + %35 for remaining


For example x apartment’s net income for 2016 subject to tax is 47.345 Turkish Liras as per above calculations. We will calculate 5.370 TL for the first 30.000 TL + 27% x 17.345 TL. Totally is 5.370 TL+4.683, 15=10.053,15 TL. At the end we have to add 51,40 TL as stamp duty for each declaration. 10.053,15 TL Tax + 51,40 TL Stamp Duty.

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