Innovations for Rents with Tax Package
According to the latest report published by the company, significant changes will be made to tenants’ rent payments within the scope of the new tax package. These changes will affect financial relationships between landlords and tenants.
20 Percent Tax Deduction on Rental Income
With the new regulation, tenants will make their rent payments to the bank every month and 20 percent of the rent transferred to the bank account will be deducted as tax and sent to the Ministry of Finance. The remaining part will be deposited into the homeowner’s account. This will reduce the monthly rental income of homeowners.
Automatic Tax Deduction Application
In the proposed system, landlords will be relieved of the obligation to submit an annual declaration and rental tax will be deducted automatically. Thus, homeowners will be able to pay their taxes regularly every month.
All Rent Payments via Bank
According to the new practice, rental payments will be made through banks. Banks will make a 20 percent withholding tax on the rent money deposited into homeowners’ accounts. The remaining amount will be considered as tax-paid rental income.
Total Rental Tax to be Paid to the State
With the implementation of the application, the state is expected to collect 40 billion liras of rental tax annually from homeowners. This means that homeowners pay a significant portion of the rental income they earn as tax.
