Revenue Administration issues statement on claims of new tax on rental income

The Revenue Administration (GİB) has announced that there is no new tax regulation targeting rental income in the tax law proposal currently being discussed in the Grand National Assembly of Turkey (TBMM). The GİB felt the need to issue a statement in response to misleading posts circulating on social media claiming that "a new tax has been imposed on rents."

The statement clarified that the Draft Law on Amendments to Tax Laws and Certain Laws and Decree-Law No. 631, currently under discussion in the TBMM, does not contain any new tax regulations regarding rental income. It was stated that, according to current regulations, residential rental income is collected without any deductions, and income exceeding a certain amount is declared and taxed.

EXEMPTIONS AND NEW REGULATIONS

The GİB announced that the exemption amount applicable to rental income is 47 thousand liras, and income exceeding this amount is declared in March of the following year, with income tax paid accordingly. It was noted that there is no need to file a tax return for rental income remaining below the exemption amount; however, those who are required to report their commercial, agricultural, or professional earnings via an annual tax return, as well as those whose total income exceeds a certain threshold, cannot benefit from this exemption.

It was emphasized that the new regulations will take effect from January 1, 2026, and that the exemption application will be maintained for those receiving retirement, widow, orphan, and disability pensions, while it will be abolished for other taxpayers. Furthermore, it was explained that according to Article 86 of the Income Tax Law, an annual income tax return does not need to be filed for residential rental income that does not exceed the declaration threshold.

It was stated that those who prefer the actual expense method can deduct expenses related to the property they rent out and will pay income tax on the amount remaining after these deductions. The GİB noted that the exemption for retirees will be maintained under current conditions, but those who earn commercial, agricultural, or professional income, or whose other income exceeds a certain amount, will not be able to benefit from this exemption.

News Source: 12punto