Will the withholding tax for prepaid rent be paid all at once?

Will the withholding tax on prepaid rent be paid in full?

Yes. Withholding tax will be paid on the entire prepaid rent. However, the parts of the rents for the following months will be tracked in accounts 180 or 280 and will be recorded as expenses in the relevant month of the year.

Example: 1 Annual net 1,000,000 TL workplace rent was paid in advance on August 1, 2024.

Net rent: 1,000,000 TL

Withholding Rate: 20% (Based on gross amount)

Gross rent: 1,250,000 TL (1,000,000 / 0.80)

Withholding amount: 250,000 TL (1,250,000 x 20/100)

Source: Istanbul Chamber of Certified Public Accountants
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