Regulation
Pursuant to the “Income Tax General Communiqué (Serial No: 328)” published in the Official Gazette dated 17.10.2024 and numbered 32695, it has become obligatory for those who rent out their residences and workplaces, and those who rent them out, to certify their rent collections and payments with documents issued by banks or Post and Telegraph Organization Joint Stock Company (“PTT”).
Collections and payments made for weekly, daily or similar short-term residential rentals are also within the scope of the regulation.
Payment Methods
Since receipts or account statements are issued in return for collections and payments made through banks or PTT using instruments such as deposits, transfers, EFT, checks, debit and credit cards, these documents will be accepted as certifying documents.
Payments and collections made through internet branches (websites or apps) of banks are also considered valid. The obligation of documentation shall also be deemed to be fulfilled in case the rent payments are deposited into the account of the lessor by going to the bank branches and make the payment with the Turkish identification number, tax identification number, name, surname/title of the landlord and with “rent payment” explanation.
Pursuant to the “Income Tax General Communiqué (Serial No: 328)” published in the Official Gazette dated 17.10.2024 and numbered 32695, it has become obligatory for those who rent out their residences and workplaces, and those who rent them out, to certify their rent collections and payments with documents issued by banks or Post and Telegraph Organization Joint Stock Company (“PTT”).
Collections and payments made for weekly, daily or similar short-term residential rentals are also within the scope of the regulation.
Penalty for both Tenant and Landlord
A special irregularity penalty of 10% of the transaction amount shall be imposed for each transaction to each tenant and landlord who do not comply with the obligation, provided that the penalty amount shall not be lower than below:
- TRY 20.000 for first class merchants and self-employed persons,
- TRY 10,000 for second class merchants, farmers keeping books, and those are subject to small business taxation,
- TRY 5.000 for others.
If those who do not comply with the obligation report the situation by itself within 5 business days following the payment, the penalty shall not be applied.