Taxpayer (C) who does not reside in Turkey and lives in France leased out her office in Bodrum and obtained 10.000 € as rental income 2018. It is withheld 12.000 TL from rental income.
On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.
Total Revenue from workplace (gross) = 10.000 € x 6 TL = 60.000 TL
Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.
Example: Taxpayer (D), living in Brussels, leased out his flat in Ankara and obtained 7.000 € as rental income in 2018. Also he leased out his office in Ankara and obtained 9.000 € as rental income in 2018. It is withheld 10.800 TL from rental income of workplace.
On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.
Total Revenue from workplace (gross) = 9.000 € x 6 TL = 54.000 TL
He has no other income to declare in Turkey and preferred the lump-sum expenses method.
Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.
Income tax for rental income from her flat exceeding the exempted amount is calculated as follows:
Total Gross Revenue (7.000 € x 6 TL) 42.000 TL
Amount of exception 4.400 TL
Balance (42.000 – 4.400) 37.600 TL
Lump-sum Expenses (37.600 x 15%) 5.640 TL
Taxable Income (37.600 – 5.640) 31.960 TL
Amount of income tax calculated 5.652 TL
Amount of income tax payable 5.652 TL Stamp duty 72,70 TL
Example 5: Taxpayer (E), living in Italy, leased out her office in Malatya in 2018 to a taxpayer whose income subject to simple method and obtained 6.500 TL as rental income annually.
She preferred the lump-sum expenses method and income tax for rental income is calculated as follows:
Rental Income from Workplace 6.500 TL
Lump-sum Expenses (6.500 x 15%) 975 TL
Taxable Income (6.500 – 975) 5.525 TL
Amount of income tax calculated 828,75 TL
Amount of income tax payable 828,75 TL Stamp duty 72,70 TL
Source: gib
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