Are self-employed individuals subject to expense restrictions for the passenger cars they rent?

Yes, the expense restriction also covers self-employed individuals.

These taxpayers will also take into account the portion of the monthly rental fee of the passenger cars they use for their activities that is 26,000 TL + VAT for 2024 in determining the tax base. (Income Tax Law Art. 40/1)

The portion exceeding 26,000 TL per month and the VAT corresponding to the excess will be taken into account as non-tax-deductible expenses in determining the tax base.

In addition, they will take into account the portion of 70% of the fuel and other expenses covered by the tenant related to the vehicle during the month as a deduction in determining the tax base. The portion corresponding to 30% and the VAT corresponding to this will be taken into account as non-tax-deductible expenses in determining the tax base.


Source: Istanbul Chamber of Certified Public Accountants
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.