If a person who will open a sole proprietorship shows his/her spouse’s residence as a business address, does he/she have to pay rent?
If the person who owns the residence allocates it to his/her spouse for use as a home-office free of charge, the person who owns the workplace does not have to declare rent withholding tax for the rent not paid. In free of charge leases, a lease contract will be issued and the lease price section will be indicated as free of charge.
The person who allocates his/her residence free of charge for his/her spouse’s commercial activity should calculate rental income based on the imputed rental price.
Sample imputed rent calculation:
Property tax value of the real estate in the municipality: 1.000.000 TL
Annual precedent rent: TL 50.000 (TL 1.000.000 x 5%)
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