Covid-19 virus in Türkiye as well as all over the world, deeply affects human health, social and economic life. Due to the setbacks in working life and economy, declaration and payment periods of the annual income tax declarations, which must be declared until 31.03.2020, have been extended.

Ministry of Treasury and Finance annouced that the deadline for 2019 Annual Income Tax Declarations and first installment of tax payment which is 31 March 2020 was postponed to 30 April 2020.

Relevant circular in Turkish regarding the subject can be accessed from here.

Due to Covid-19 Coronavirus outbreak, which is on the Global agenda, in accordance with the press statement given as per the joint decisions of the Ministries of Family Labor and Social Services, Treasury and Finance, and Industry and Technology; there have been temporary amendments on incentives implemented to Teknopark companies and R&D Design Centers that will enable their employees to work from home.

Within the scope of 4691 numbered Law on Technology Development Zones, and 5746 numbered Law on Supporting Activities of Research, Development and Design, and relevant regulations; in order for businesses operating in Technology Development Zones and R&D Design Centers to benefit from exemptions and incentives, it is mandatory to physically conduct their activities within these areas.

The salary income earned by the employees are declared to the tax office with the Annual Income Declaration under below circumstances.

You can find below the important points to consider with regards to the salary income taxed via stoppage;

1. In case of taxpayers’, who receives income from more than one employer, total income received from the secondary employers exceeds the amount in the second income segment of the income tax tariff (40.000 TL for 2019), these salary incomes will be declared with annual declaration.
2. In case of income is received from more than one employer, the employee can freely choose which income will be considered as primary.
3. In case annual declaration is to be submitted, it is possible for expenses of education, health, donations and charities to be subject to deductions of the declared income.
4. Taxes paid by stoppage can be deducted from income tax calculated over the declaration.

Each year, the rent income earned by real persons are declared to the respective tax office with the Annual Income Declaration until 31st of March, 2020. The types of income that are within the scope of GMSI except for the rent incomes, are stated in the 70th article of Income Tax Law.

Two applications are essential in declaring rent income; lump sum expense and real expense methods. Taxpayers who choose the lump sum method can deduct the 15% of the remaining amount from real expenses after deducting the exemption from their rental income. Those who lease the rights cannot apply the lump sum method. In the table below only information is provided for rent income from residential and commercial places. For further detailed information please contact your customer representative or an expert.