The Withholding Rates To Be Made In Real Estate Rentals Have Been Reduced From 20% To 10%

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

• Rent payments of goods and rights indicated in Income Tax Law articles 94/5-a and 70,
• Rent payments of real estates belong to foundations (excluding fused foundations) and associations as indicated in the article 94/5-b,
• Rent payments of real estates which 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 estates belong to cooperatives as indicated in the Corporate Tax Law article 15/l-b and provisional article of 1/4,

As of 31.07.2020, valid withholding rates have been reduced from 20% to 10%, until 31.12.2020.

The related amendment came into effect on 31/07/2020 and the newly determined rates will be applied until 31/12/2020.

Related resolution can be accessed from here.

For further details, please contact your Customer Representative.

Category Taxation Law

• 

• Notification!

  The content in this article is for general information purposes only and belongs to CottGroup^® member companies. This content does not constitute legal, financial, or technical advice and cannot be quoted without proper attribution.

  CottGroup^® member companies do not guarantee that the information in the article is accurate, up-to-date, or complete and are not liable for any damages that may arise from errors, omissions, or misunderstandings that the information may contain.

  The information presented here is intended to provide a general overview. Each specific case may require different assessments, and this information may not be applicable to every situation. Therefore, before taking any action based on the information provided in the article, it is strongly recommended that you consult a competent professional in the relevant fields such as legal, financial, technical, and other areas of expertise. If you are a CottGroup^® client, do not forget to contact your client representative regarding your specific situation. If you are not our client, please seek advice from an appropriate expert.

  For contact and company information, please visit the CottGroup^® Member Companies page.