Example: Taxpayer (B), living in Poland, leased out his flat in Antalya and obtained 15.000 $ as rental income in 2018. He preferred the actual expenses method and he has no other income to declare in Turkey. His total actual expense for this house is 3.000 Dollars.
On the date of collection and expenditure, buying rate for Dollar announced by The Central Bank of Republic of Turkey is assumed as 5,50 TL.
Total Revenue = 15.000 $ x 5,50 TL = 82.500 TL
Total Expenses = 3.000 $ x 5,50 TL = 16.500 TL
(Taxpayers who have chosen the actual expenses method will not deduct the expense corresponding to the amount subject to exception from their income, but only the expense corresponding to the amount subject to taxation. Thus, first the total expenses corresponding to the total taxable revenue should be determined. Deductible expenses corresponding to the taxable revenue is calculated as follows:)
Deductible expenses = Total expenses x Taxable Revenue* / Total Revenue
* Taxable Revenue = Total Revenue – Amount of exception for rental income from house
= 82.500 – 4.400
= 78.100 TL
Amount of exception corresponding to taxable revenue (Amount of deductible actual expenses)
= 16.500 x 78.100 / 82.500 = 15.620 TL
Income tax for rental income of taxpayer is calculated as follows:
| Total Gross Revenue (15.000 $ x 5,5) | 82.500 TL |
| Amount of exception | 4.400 TL |
| Balance (82.500 – 4.400) | 78.100 TL |
| Amount of deductible actual expenses | 15.620 TL |
| Taxable Income (78.100 – 15.620) | 62.480 TL |
| Amount of income tax calculated | 13.749,60 TL |
| Amount of income tax payable | 13.749,60 TL |
| Stamp duty | 72,70 TL |
Source: GİB
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