Minister Şimşek explains how to avoid penalties on rental income

Treasury and Finance Minister Mehmet Şimşek made an assessment regarding the work carried out following the end of the declaration period for rental income.

Şimşek stated that those who have earned income from rent, wages, and capital gains but have not declared it can avoid paying penalties by filing a remorse declaration.

THE HIGHEST AMOUNT SINCE 2016

Highlights from Şimşek's statements are as follows:

Şimşek emphasized that the number of declarations, as well as the declared tax base and tax amounts this year, are the highest figures since the Ready Declaration System was launched in 2016.

Reminding that the Revenue Administration has implemented practices that increase voluntary tax compliance among taxpayers, Şimşek said that many studies have been conducted since the beginning of this year to identify and inform taxpayers who have earned rental income and are required to file a declaration.

PHYSICAL INSPECTIONS INITIATED

Şimşek noted that, first of all, physical inspections have been initiated for approximately 1.5 million residences identified as being rented out as a result of analyses using information obtained from numerous institutions, primarily banks, insurance companies, land registry, and population directorates.

Stating that information regarding the homeowner, the tenant, and the rental amount was recorded in residences visited one by one by tax office employees, Şimşek expressed that physical checks were carried out at more than 400 thousand addresses within this scope.

"WE SENT REMINDER SMS TO MORE THAN ONE MILLION TAXPAYERS"

Şimşek also reminded that tenants are allowed to quickly and easily transmit information regarding the residences and workplaces they rent to the Administration via the “Rental Notification Form” added to the Digital Tax Office, and stated the following:

“The Administration sent information and reminder SMS to more than one million taxpayers who were required to file a declaration before March 1, the start of the declaration period, and those who did not file a declaration during the declaration period. Throughout the declaration period, taxpayers were enabled to easily file their declarations through stands set up in shopping malls as well as tax offices.”

During the declaration period that ended on Friday, April 5, 1 million 811 thousand taxpayers who earned income from rent, wages, securities income, and other earnings and revenues filed declarations. With the declarations filed by these taxpayers, a tax base of 399.2 billion liras and 126.9 billion liras in tax were declared.

NUMBER OF DECLARATIONS INCREASED BY 27 PERCENT COMPARED TO LAST YEAR

Reminding that 1 million 423 thousand taxpayers declared a tax base of 192.4 billion liras and 63.2 billion liras in tax in March of last year, Şimşek said that there was a 27 percent increase in the number of declarations, a 107 percent increase in the tax base, and a 101 percent increase in calculated tax compared to last year.

"NO PENALTY IS IMPOSED WHEN A DECLARATION IS FILED WITH REMORSE"

Emphasizing that the number of declarations, as well as the declared tax base and tax amounts this year, are the highest figures since the Ready Declaration System was launched in 2016, Şimşek concluded as follows:

“Following the end of the declaration period, the Revenue Administration identified taxpayers who did not file a declaration despite earning income from rent, wages, and capital gains. These taxpayers will be sent to tax offices as soon as possible to have penalty proceedings initiated against them.

Those who did not fill out a declaration despite earning income can file a declaration by benefiting from the remorse provisions of the Tax Procedure Law before receiving a notice from the tax office. No penalty is imposed when a declaration is filed with remorse. The declaration can be filed from anywhere with internet access via the Ready Declaration System, and the tax can also be paid online via this system using a debit or credit card.”