Example: Taxpayer (B) rented his house from 360 TL per month and obtained 4.320 TL annually in 2018. In this case, rental income from house less than the exemption amount of 4.400 TL is not to be declared by the taxpayer.

In the case the rental income is not declared between the dates in time or the rental income is understated, it will not be possible to benefit from the exception amount of 4.400 TL for the year 2018.

However, those who submit declarations, before any determination is made by the administration, on their own accord for their rental income which they did not declare or include in their declarations on time, will benefit from the related exception.

If the rental income from house exceeds the amount determined for exception, the amount of exception should be deducted from rental income to be declared in the annual tax declaration.

The exception applies only to rental income from properties that have been rented as house. Taxpayers whose rental income from house under 4.400 TL in 2018  do not file a tax declaration for these incomes.

For instance, if there is a rental income obtained and declared at the same time both from house and workplace, the exception applies only to the rental income obtained from house, not to the rental income from workplace.

Persons, who have to declare their income from business, agriculture or professional   activities, are not eligible to benefit from 4.400 TL of exception. Besides, persons who gain rental income equal to or above 4.400 TL, of whose gross total of their income including wage, capital investment income, rental income and other incomes exceeding the amount 120.000 TL for the year 2018 jointly or severally, cannot benefit from exception.

In case more than one person has the ownership of a house, the taxation of the rental income obtained from such house will be subject to 4.400 TL (for the year 2018) of exception separately for each proprietor.

Thus, if the inheritance is not shared, every inheritor will benefit from the exception separately.

In case one taxpayer obtains rental income from more than one house, the exception will be applied at once to the total amount of rental income.

Kaynak: gib.gov.tr
Yasal Uyarı: Bu içerikte yer alan bilgi, görsel, tablolar, açıklama, yorum, analiz ve bir bütün olarak içeriğin tamamı sadece genel bilgilendirme amacıyla verilmiştir. Kişi veya kuruma özel profesyonel bir bilgilendirme ve yönlendirmede bulunma amacı güdülmemiştir. Konu ile benzerlik gösterse de her işletmenin kendi özel şartları nedeniyle farklı durumları olabilir. Bu nedenle, bu yazıda belirtilen içerikte yola çıkarak işletmenizi etkileyecek herhangi bir karar alıp uygulamaya geçmeden önce, uzmanına danışmanız menfaatiniz gereğidir. Muhasebenews veya ilişkili olduğu kişi veya kurumlardan hiç biri, bu belgede yer alan bilgi, tablo, görsel, görüş ve diğer türdeki tüm içeriklerin özel veya resmi, gerçek veya tüzel kişi, kurum ve organizasyonlar tarafından kullanılması sonucunda ortaya çıkabilecek zarar veya ziyandan sorumlu değildir.

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There is no need to bring the earnings, which are received from construction, repair, fitter’s work and technical services done abroad, into Turkey in order to apply this exception.

It will be sufficient to transfer abovementioned earnings into the general nominal accounts in Turkey in order to take advantage of this exception.

Source: Act of Fees

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

2- WHAT IS THE LEGAL FOUNDATION OF THIS?
First of all, a fully responsible company should pay taxes in Turkey for the earning that it makes throughout the World.

In accordance with article 3 of the Corporate Tax Law; “Companies (listed in article 1 of the law) whose legal center or business center is in Turkey should pay taxes either they make profit in Turkey or in a foreign country.

HOWEVER, in sub clause (h) of the first clause of article 5 titled “Exceptions” of the law, there is a provision that the earnings provided by construction, repair and fitter’s work done in a foreign country and then transferred to the general nominal accounts in Turkey are not subject to Corporation tax.

In the portion titled “5.9 Exception in profits made through construction, repair, fitting works and technical services done in a foreign country” of Communiqué on Corporation Tax;
“in sub clause (h) of the first clause of article 5 titled “Exceptions” of the law, there is a provision that the earnings provided by construction, repair and fitter’s work done in a foreign country and then submitted to the general nominal accounts in Turkey are not subject to Corporation tax.”

3- BESIDES, YOU DO NOT HAVE TO BRING YOUR PROFIT INTO TURKEY!
In order to practice this exception, you do not have to bring your profit into Turkey if you make money through;
-Construction,
–Repair,
–Fitting works and
-Technical services.

It is enough to transfer abovementioned profits to the general nominal accounts in Turkey in order to take advantage of the exception.

You do not have to bring these amounts into Turkey and you may use them abroad. Additionally, you have to include this amount into profit and loss statement amount of your company accounts in Turkey.

4- YOU SHOULD INCLUDE THIS AMOUNT IN YOUR INCOME STATEMENT (PROFIT-LOSS STATEMENT) AS PROFIT.
The profit made within the scope of the exception should be included in company’s income statement (profit-loss statement), and then it should be deducted from the tax assessment while making corporate tax return.

Thus, finance and credit rating institutions will evaluate your company’s credibility, foreign-based profit will affect your conditions positively.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.