Tax marathon in the Turkish Parliament: Rental exemption to be abolished, new fee schedule introduced

The General Assembly of the Turkish Parliament will discuss the proposal for amendments to Tax Laws, certain other laws, and Decree-Law No. 631 this week. During the deliberations, a motion is expected to be submitted to introduce a cap on increases in the fair market value used as the basis for property taxes.

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Tax marathon in the Turkish Parliament: Rental exemption to be abolished, new fee schedule introduced

In the General Assembly of the Turkish Parliament, the proposal for amendments to Tax Laws, certain other laws, and Decree-Law No. 631, which was debated in general last week and is known in the public as the "tax package," will be addressed article by article this week.

RENTAL INCOME EXEMPTION TO BE ABOLISHED, RETIREES TO BE EXEMPT

Within the scope of the regulation, an amendment to the Income Tax Law is planned to abolish the exemption applied to residential rental income. While the exemption, which is 47 thousand TL for 2025, is being repealed, it is stated that retirees will be exempt from this practice and will not pay taxes regardless of their rental income.

PREMIUM SUPPORT REDUCED, HEALTH AND LABORATORY LICENSES REORGANIZED

The proposal includes reducing the 4 percent premium support provided to employers from the treasury to 2 percent. The 5 percent support in the manufacturing sector will be maintained. Furthermore, licenses granted to hospitals and laboratories will need to be renewed annually. Establishment permit certificates for private food control laboratories will also be included under the licensing scope.

FEES FOR PRIVATE HEALTH INSTITUTIONS REDETERMINED

License fees for private health institutions providing outpatient diagnosis and treatment services are being reorganized. The compliance certificate for a private practice will be set at 20 thousand liras, a private polyclinic license at 30 thousand liras, and a private medical center license at 50 thousand liras. Fees for private practices, polyclinics, centers, and hospitals in the field of oral and dental health will also range between 20 and 40 thousand liras.

FEES TO BE INCREASED BY ONE FOLD IN METROPOLITAN DISTRICTS

This tariff will be applied with a one-fold increase in districts with a population exceeding 30 thousand in provinces with metropolitan status.

ANNUAL LICENSE FEES FOR TOURISM ENTERPRISES AND VETERINARY INSTITUTIONS

Tourism operation certificates will now be subject to an annual fee practice. License fees for veterinary clinics, private practices, and animal hospitals will be 10 thousand, 20 thousand, and 40 thousand liras, respectively.

HIGH FEE PRACTICE FOR PRECIOUS METAL REFINERIES AND INTERMEDIARY INSTITUTIONS

The establishment permit for precious metal refineries will be 7 million 500 thousand liras, the annual operating permit certificate will be 7 million 500 thousand liras, and the intermediary institution operating permit certificate will be 5 million liras.

AVIATION LICENSES TO SWITCH TO NEW TARIFF IN 2026

Airline operating fees are also being regulated. The annual license fee for companies engaged in passenger and cargo transportation will be 2 million liras; 1 million liras for cargo-only transportation; 500 thousand liras for air taxis; and 100 thousand liras for general aviation. The new practice will enter into force on January 1, 2026.

YÖK BECOMES AUTHORIZED IN FEE UPDATES AT FOUNDATION UNIVERSITIES

With the proposal, the rules regarding the updating of fees determined by the board of trustees at foundation universities are changing. The principles determined by the Council of Higher Education (YÖK), taking into account the average of the June Producer Price Index (PPI) and Consumer Price Index (CPI), will be applied.

FEE EXEMPTION IN SECOND-HAND VEHICLE SALES ABOLISHED

With the regulation made in the Highway Traffic Law, the fee exemption for second-hand vehicle sales and transfers carried out at notaries is ending. This article will enter into force on January 1, 2026.

25 PERCENT DEDUCTION LIMIT ON SGK DEBTS

Premiums and premium debts of those receiving income or pensions from the Social Security Institution (SGK) will be collected by deducting an amount not exceeding 25 percent of their income or pension. This provision will also enter into force as of 2026.

595 BILLION LIRA ADDITIONAL DEBT AUTHORIZATION FOR THE BUDGET DUE TO EARTHQUAKE

To address the effects of the Kahramanmaraş earthquakes and meet the additional financing needs for 2025, 595 billion TL will be added to the net debt usage limit.

NEW RATES FOR AGRICULTURAL WORKERS, TITLE DEED TRANSACTIONS, AND VEHICLE TRANSFERS

The disability-old age-death premium rate for agricultural workers and those working in domestic services is increasing to 21 percent. Penalties for understating property values in title deeds are being increased. A fee of two per thousand of the sale price, with a minimum of 1 thousand TL, will be charged on new and second-hand vehicle sales. The borrowing premium rate, excluding birth-related borrowing, will be increased from 32 percent to 45 percent.

FAIR MARKET VALUE REGULATION IN PROPERTY TAXES COMES TO THE AGENDA

A regulation regarding the fair market values used in the calculation of property taxes is also expected to be addressed within the scope of the proposal.

FOUR MINISTRIES TO BE ADDRESSED IN THE PLANNING AND BUDGET COMMITTEE THIS WEEK

The 2026 budget work in the Planning and Budget Committee is nearing its end. This week, the budgets of the Ministry of Agriculture and Forestry, the Ministry of Justice, the Ministry of National Defense, and the Ministry of Environment and Urbanization will be discussed. The committee marathon will be completed with the discussion of the Presidency's budget on Monday, December 1.