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06August2020

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

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.

Written by Selma Kıy, Posted in Taxation Law

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    Contents provided on 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 of this notification without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance is put in the preparation of this article, CottGroup® and 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. Prior to taking any action in regards the above, please consult your client representative if you are a customer of CottGroup® or consult to a relevant party.

About The Author

Selma Kıy

Certified Public Accountant - SMMM
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