The “Communique (serial no. 307) on Amending the General Income Tax Communique (serial no. 301)” (hereinafter referred to as the “Communique”) has been published on the Official Gazette on the date of 15.03.2019 by the Ministry of Treasury and Finance (Revenue Administration). A regulation is made with the Communique regarding the raise of the deduction limit to be considered in the deduction provisions in the annual income and corporate tax declarations as of 01.01.2019.

As is known, there have been some amendments on the General Implementation Communique on Value Added Taxes published on the 26.4.2014 dated and 28983 numbered Official Gazette with the “COMMUNIQUE ON THE AMENDMENT OF THE GENERAL IMPLEMENTATION COMMUNIQUE ON VAT” published on 15.02.2019 dated and 30687 numbered Official Gazette.

Below you may find our detailed explanations on the issue of bad debts brought with this amendment:

7166 numbered the “Law on Amending Social Services and Some Other Laws” (the “Law”) has published in the 30694 dated Official Gazette. This Law has made some amendments on Environmental Law, Value Added Tax Law (“VATL”), Unemployment Insurance Law, Special Consumption Tax Law (“SCTL”,“ÖTVK”), Occupational Health and Safety Law and some other Laws. A new wage support incentive to the employers, some VAT and Special Consumption Tax (ÖTV) regulations are among these amendments.

Our explanations regarding some important amendments are as follows

Each year, the rent income earned by real persons are declared to the relevant tax office with the Annual Income Declaration by March 25. The income types which are acknowledged within the scope of the GMSI (real property income), other than the rent incomes, are elaborated on the Income Tax Law, Article 70.

The responsible party who is to apply the lump sum method, once the exemptions to be implemented on the tax can deduct the 15% rest of the amount to be declared under real expense. In the below table, you can refer to the details on rent income, applicable to residential and commercial properties. For further detailed information please contact your customer representative or an expert.