Every month, 20 percent of the rent will go to the Ministry of Finance as tax.

With the new tax package, the tenant will deposit his rent to the bank every month, and the bank will deduct 20 percent of the rent money in the account as tax and send it to the Ministry of Finance, leaving the rest in the landlord’s account. In this case, the monthly rental income of the homeowner who rents his house for 10 thousand liras will decrease to 8 thousand liras.

1/5TH OF THE RENT IS TO THE FINANCE

It has been claimed that the rental tax (Real Estate Capital Income – GMSI) paid by those who rent their homes by filing a declaration once a year may turn into an automatic tax. According to the tax package, the tenant will deposit his rent to the bank every month. The bank will deduct 20 percent (1/5) of the rental money in the account as tax and send it to the Ministry of Finance, leaving the rest in the landlord’s account.

MONTHLY TAX DUTY ON RENTAL

According to the news in Sözcü; According to the current law, the tax on rental income earned during a year is paid by filing a return the following year. During the declaration, the exemption amount, which increases at the rate of revaluation every year, is deducted from the total income and tax is collected starting from 15 percent on the remaining part. In the new system, rental income may be deducted just like the tax deduction (withholding) made from employees’ salaries every month.

20 PERCENT WITHDRAWAL FROM RENTAL MONEY

On the other hand, all rent payments will be made through banks. The bank may deduct a 20 percent withholding tax from the rent money deposited into the landlord’s account, as is the case with interest and similar earnings. It was stated that the remaining amount can be deducted into the landlord’s account as tax-paid rental income. With this method, the rental tax, which normally starts from 15 percent, will increase to 20 percent. Homeowners will then be able to declare their expenses and request a refund of the taxes they paid, if they wish. It was stated that the application will be valid for rental income obtained from 2025.

HOMEOWNERS WILL PAY 40 BILLION TAXES TO THE STATE

It is estimated that with the introduction of withholding tax on rent, the state will collect 40 billion liras of rental tax from homeowners. This shows that the amount left to homeowners from the rental income expected to be 200 billion lira will be 160 billion lira. While homeowners pay 1 month of 12 months’ rental income to the state as tax, they may have to pay 2 months’ rent to the state with the new regulation.