Claim: New tax coming for landlords! Ministry issues statement

According to a planned new regulation in the tax law, a 20 percent withholding tax will be introduced on residential rents. With this regulation, the era of "cash rent" will come to an end. According to the legislative proposal to be submitted to Parliament, landlords will only be able to receive rent payments via banks or PTT. A 20 percent tax deduction will be made on these payments. The state's goal is to record all rental income.

EXEMPTION FOR RETIREES WILL CONTINUE

It was stated that the current exemption for retirees whose only income is a social security pension will be maintained. Accordingly, retirees whose income from a single rented property does not exceed 47 thousand liras will be exempt from the withholding tax. However, if rent payments are received in cash, the unpaid tax along with penalties and interest will be collected from the landlord.

INCREASE IN RENTS EXPECTED

According to experts, the new regulation could lead landlords to increase rental prices because a portion of the rental income will go to taxes. This situation could cause an increase in rents and may also reduce the appeal of housing as an investment vehicle.

While the Grand National Assembly of Turkey is expected to discuss the 11th Judicial Package next week, the withholding tax regulation for landlords is planned to come to the parliamentary agenda next month.

MINISTRY DENIED

The Ministry of Treasury and Finance announced that the claims appearing in some media outlets regarding a 20 percent withholding tax deduction on residential rents do not reflect the truth.

In the statement made by the Ministry, it was stated, "The news appearing in some media outlets today regarding a 20 percent withholding tax deduction on residential rents does not reflect the truth. There is no change on our agenda regarding rental withholding tax."

News Source: 12punto