The Draft General Communiqué on Income Tax Has Been Published on the Website of the Revenue Administration

The Draft General Communiqué on Income Tax concerning documentation requirements for rent payments has been published on the website of the Revenue Administration.

The draft communiqué establishes the procedures and principles for the collection and payment transactions related to workplace and residential rentals carried out by taxpayers of income and corporate tax, as well as those without any tax liability registration.

Accordingly, regardless of any monetary threshold, the collection and payments to be made by income and corporate tax taxpayers, as well as those without any tax liability registration, must be documented through:

a) Banks as defined in the Banking Law No. 5411,

b) Post and Telegraph Organization A.Ş. (PTT) established under the Postal Services Law No. 6457.

It is mandatory to document rent payments through the documents issued by banks or the Post and Telegraph Organization A.Ş. The requirement to document rent payments applies to all residential and workplace rentals, including short-term rentals such as weekly or daily residential rentals.

Collections and payments made in relation to rental fees through courts or enforcement proceedings, or made in kind, are excluded from the obligation to document.

Additionally, documents related to payments made through deposit, wire transfer, EFT (Electronic Funds Transfer), check, or payment via bank or credit card will be accepted as supporting documentation.

A special irregularity fine will be imposed on those who do not comply with the obligations introduced by this communiqué, in accordance with Article 355 of the Tax Procedure Law (VUK). The fine will be imposed separately on each party that acts contrary to the obligation, at a rate of 10% of the transaction amount. For 2024, the fine will not be less than:

i) 20,000 TL for first-class merchants and self-employed individuals,

ii) 10,000 TL for second-class merchants, farmers keeping books, and those whose income is determined under the simple method,

iii) 5,000 TL for those not listed above.

If those who make payments in violation of the documentation requirement report this situation to the administration on their own initiative within 5 business days following the payment, no special irregularity fine will be imposed on the payer.

You can review the full text of the communiqué at the link below, and feel free to contact us for more information on the subject.

https://www.gib.gov.tr/sites/default/files/fileadmin/mevzuatek/gvtebligtaslak09092024.pdf