Immovable property means real property which includes land buildings, and permanent leasehold rights. Ships, boats, aircraft and other types of transportation vehicles are also regarded as immovable property in the application of the PIT Law.
Income from immovable property comprises:
– Land, buildings, mineral water, mines, quarries, sand and pebble pits, brick and tile kilns, Salinas, together with their integral parts and accessories,
– Large fishing nets and traps,
– Integral parts and accessories of buildings, all their installations, inventory and furniture, leased independently from the building,
– Rights registered as real estate,
– Exploration, exploitation and concession and license, patent rights (The incomes earned by leasing the patents by the inventors or their legal heirs shall be the earnings of self-employment), the right of utilization or rights such as usage privileges on all kinds of trade mark, brand, trade name, all technical drawings, design, model, plan, cinema and television films, sound and video tapes; information acquired in the fields of industry, commerce and science, secret formula or production method (Also the costs of the material and equipment necessary for the utilization of such rights shall be considered as revenue from immovable),
– Copyrights (Earnings derived from the letting of such rights by the author or his legal heirs shall be considered as professional earnings),
– Ships and shares in ships (Without any consideration for their tonnage and whether they have an engine or not) and all motor vehicles of loading and unloading,
– Motorized transport and towing vehicles, all motor vehicles, machinery, installations and their attachments.
In computing net income from immovable property, costs related to maintenance, management, renovation and running, and depreciation may be deducted from the gross income on the actual basis; it is also allowed to make a lump-sum deduction instead of actual costs, except for the income from the lease of the rights mentioned above. In such cases, lump-sum deduction is 25% of the rental income.
Source: Revenue Administration
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