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)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.