Declaration period for rental income begins March 1: Those exceeding this amount must file a return
The Revenue Administration has published an important guide for those earning rental income. Rental income to be considered for tax declaration will be calculated based on the year it was collected. Rents paid in advance will be divided across the relevant years. Penalties await those who do not report their 2023 rental income during the declaration period starting March 1. The rental income exemption limit set for 2024 is 33 thousand liras.
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The Revenue Administration has published a guide containing important information for taxpayers earning rental income.
According to this guide, rental income must be collected in order to be taxable. Even if payment is made by check, it is considered a cash collection. Rental payments collected by taxpayers for that year or for previous years are evaluated as income for the year in which the payment occurred. For example, if rental payments for 2022, 2023, and 2024 are received in a lump sum in 2024, these earnings are counted as income for the year 2024.
According to Hürriyet's report, the guide also includes an explanation regarding future rental payments. Accordingly, rental income collected in advance for future years is not considered income for the year in which the payment is made, but rather for the year to which it relates. For example, if rental payments for 2024, 2025, and 2026 are received in a lump sum in 2024, the rental income for each year will be evaluated separately as earnings for that specific year.
Within the scope of the income tax declaration period starting March 1, taxpayers are required to declare the rental income they earned during 2023. The rental income exemption amount set for 2024 is 33 thousand liras. If a person has earned an annual rental income below this amount, there is no obligation to file a tax return.