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03June2021

10% Withholding Rate Will Be Applied for Renting Until 31.07.2021

10% Withholding Rate Will Be Applied for Renting Until 31.07.2021

With Presidential Decree No. 2813, published on the Official Gazette numbered 31202 and dated 31.07.2020; withholding rates of rent payments of real estate, to be made in cash or to account, have been reduced from 20% to 10% until 31.12.2020, in accordance with the 94th article of Income Tax Law and 15th article of Corporate Tax Law.

Afterwards, with Presidential Decree No. 3319, the period of the regulation has been extended to 31.05.2021.

With Presidential Decree published on the Official Gazette numbered 31499 and dated02.06.2021, it is decided to apply 10% withholding rate for rent payments of real estate until 31.07.2021.

  • Rent payments of goods and rights which are indicated in Income Tax Law articles 94/5-a and 70,
  • Rent payments of real estate belong to foundations (excluding fused foundations) and associations as indicated in the article 94/5-b,
  • Rent payments of real estate that do not have diplomatic status and belong to foreign states, foreign public institutions as indicated in the article 94/5-d,
  • Rent payments of real estate belong to cooperatives as indicated in the Corporate Tax Law article 15/l-b and provisional article of 1/4,

Valid deduction rates will be applied as 10% until 31.07.2021.

You can access our previously published article on the subject from here.

Relevant Presidential Decree can be accessed from here. (in Turkish)

Should you have any queries or need further details, please contact your customer representative.

Written by Selma Kıy, Posted in Taxation Law

  • Notification!

    Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.

    Please consult your client representative if you are a customer of CottGroup® or consult a relevant party or an expert prior to taking any action in regards to the above content.

About The Author

Selma Kıy

Certified Public Accountant - SMMM
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