Attention landlords: Investigation for those who do not declare rental income

Treasury and Finance Minister Mehmet Şimşek stated that they are working to prevent rental income from being kept outside the tax system.

Noting that the Revenue Administration (GİB) continues its efforts to increase voluntary tax compliance, Şimşek emphasized that the Administration is continuing its audit work uninterruptedly in terms of combating the informal economy, in addition to the services it provides to registered taxpayers.

Pointing out that the declaration period for rental income is approaching, Şimşek said, "In order to ensure that rental income is declared correctly in March of this year, the rental income of property owners has been placed under scrutiny."

"1.7 MILLION DECLARATIONS RECEIVED THROUGH WORK CONDUCTED LAST YEAR"

Reporting that positive results were obtained from the work carried out in this area last year and that taxpayers were enabled to declare income they had previously left undeclared, Şimşek explained that through checks made as a result of data obtained from other public institutions and organizations, primarily bank and land registry records, taxpayers who were required to file a declaration were identified and ensured to submit their tax declarations.

Stating that reminders are sent to taxpayers via text message before legal proceedings are initiated to increase tax compliance, Şimşek said, "In this context, text messages were sent to 200 thousand taxpayers. Taxpayers who did not provide a response despite these reminders were invited to provide an explanation and to comply voluntarily. With the contribution of these efforts, 1 million 719 thousand 315 declarations regarding rental income were received in 2023."

Minister Şimşek pointed out that the work regarding rental income is being further developed and continued this year, and continued his words as follows:

"The GİB has included statistics published by the Turkish Statistical Institute in its efforts to ensure that property owners declare their rental income correctly before the declaration of rental income in March. As a result of examining land registry and population data, approximately 4.5 million residences with the potential to generate rental income are being analyzed; physical inspections will be conducted at addresses identified as being used for rental purposes. In these inspections, information obtained from tenants will be transferred directly to the Revenue Administration's systems via a report kept in an electronic environment; this information will be compared with bank account data and tax declarations, and necessary checks will be carried out. While reminders continue before the declaration period, legal proceedings will be initiated against taxpayers who have discrepancies in their declarations or who have not filed a declaration at all."

"DECLARATIONS CAN BE FILED EASILY ELECTRONICALLY"

Reminding that declarations regarding rental income can be filed electronically using the Ready Declaration System without going to the tax office, Minister Şimşek said that 1 million 578 thousand 932 taxpayers used the Ready Declaration System in 2023 for their 2022 income.

Pointing out that taxpayers can easily declare their 2023 rental income electronically this year as well, whether from their homes or any place with an internet connection, Şimşek noted the following:

"We invite our taxpayers to take advantage of these conveniences and declare their actual rental amounts in March. As part of the efforts to be carried out in 2024 within the scope of combating the informal economy, rental audits will be conducted comprehensively and nationwide. Our goal is to learn the actual rental income with the contribution of our citizens. For this reason, we expect the necessary support of our citizens for the audits being conducted."

News Source: AA