Each year, the rent income that individuals earn is declared through the Annual Income Declaration within March. The declarations for 2020 income should be submitted until March 31, 2021. The types of income that are within the scope of GMSI except for the rental income, are stated in the Income Tax Law Number 70.

In order to declare the rental income, the lump sum expense method and real expense methods are implemented. After deducting the amount of exception from the rental income, 15% of the remaining amount can be deducted against actual expenses. Lump sum expense method is not applicable for lease of rights. Information is only provided for rental income from residental and commercial places in the table below. For further detailed information, please contact your customer representative or an expert.

Amendments have been made regarding the rate of partial stoppage applications and its scope with the Communiqué (Row No: 35) on Amending the Communiqué of Value Added Tax General Application, which was published in the Official Gazette No. 31397 on 16 February 2021.

Related amendments are as follows;

With the presidential Decree No. 3490, published on Official Gazette No. 31385, as of 01.01.2021, the enterprises whose foreign resources exceed equity, 10% of the total of interest, commission, maturity difference, dividend, exchange rate difference, similar expenses and cost elements related to the foreign resources used in the enterprise, excluding those added to the cost of the investment, will not be considered as an expense in determining the earnings by income and corporate tax taxpayers.

Within the scope of the decision, credit institutions, financial institutions, financial leasing, and factoring companies are excluded.

Decision will be effective as of 2021/01 Temporary Taxation Period.

The application principles for income and corporate taxpayers in the taxation of earnings as of 2021/01 are as follows;

In accordance with the letter of the Ministry of Treasury and Finance, General Directorate of Public Financial Management and Transformation dated 6/01/2021 and numbered 27998389-010.06.02-11638, the expense limits exempt from income tax for the period of 1 January 2021 - 30 June 2021 has been announced.

The Tax-Exempt Amounts of Domestic Travel Expenses

The tax-exempt amounts of domestic travel allowances for the period of 01 January 2021 and 30 June 2021 are as below.