How is the rental income statement submitted? 

How is the rental income statement submitted?

How is it calculated?

How is the rental income statement submitted? How do tax rates vary depending on the size of the rental income? What are the key points in the tax calculation of the income from vacation homes and daily rented properties? Here are all the curiositiCONTRACTOR

Ahmet Karabıyık, one of the columnists of Hürriyet newspaper, is in his column today, "How to give a declaration?" He included his article titled. Here area unit the main points of the article;

We have dealt with the curious issues regarding the taxation of rental income with sample calculations starting from Monday.

On the last day of our series, we are now discussing how to deliver declarations to the Finance. The declaration can be submitted by hand by going to the tax office, can be sent by mail, or sent via the internet. Today we also consider how tax rates change according to the size of rental income. There are special cases and hesitations can be experienced in the income obtained from the cottages and from the immovables that are rented daily and weekly. We also explain the tips on the tax calculation of income from holiday homes and daily rented properties.

BY POST OR ON THE INTERNET

The rental income obtained in 2019 must be declared until the evening of 31 March at the latest. Declarations can be submitted by hand to the tax office or sent by post. Declarations must be submitted to the tax office where the taxpayer is affiliated (where he / she has residence). Income can also be declared through the "Ready-Made Return System" on the website of the Revenue Administration (gib.gov.tr).

Declarations can also be sent through financial advisors who are authorized to submit electronic declarations. Let's also make an important reminder for those who will send their declaration by mail. If the declaration is sent by regular (ordinary) mail, the date of delivery to the tax office is taken into account, not the date of delivery. In registered mail, the date of delivery to the mail is taken into account.

RECEIVING A DECLARATION FROM HOME

This service is provided only for those who earn rental income… For taxpayers over the age of 60 and disabled taxpayers who are unable to go to the tax office due to old age, disability or illness, the Revenue Administration (RA) provides a home declaration service for these people. Taxpayers with specified conditions, they are bound tax offices across Turkey or Tax Communication Center (Taxpayer's - 444 0 189) can make an appointment through.

WHAT WILL THE GURBETLER DO?

Expatriates whose house rental income exceeded 5,400 TL in 2019; they will make a declaration. When the workplace rent is obtained; They are not required to submit a declaration, no matter how much the rent amount is, provided that withholding tax has been made on it. Therefore, they do not pay taxes.

STAMP DUTY

There is no tax payment for every taxpayer. From the rental income obtained; There may be no income tax payable when exemptions, expenses and deductions are deducted. However, every property owner who filed a declaration has to pay the stamp tax of the declaration in any case. The amount of stamp tax to be paid on the income tax return for 2020 was determined as 89.10 TL. (Stamp Tax Law General Communiqué, Serial No: 64.)

INSTALLMENT PAYMENT TIMES

The first installment of the 'tax payable' calculated on the declarations that can be submitted until the end of March can be paid until 31 March 2020. The second installment can be paid until August 4, 2020 (since July 31, 2020 coincides with the official holiday-sacrifice festival). It can be paid to the tax office cashier, as well as to contracted banks and via debit cards and credit cards at gib.gov.tr.

What are the sanctions?

If the rental income is not declared or declared incompletely; The right to exemption, which is 5,400 lira for housing rental income, is lost. The income tax is calculated over the undeclared or under-declared income amount and a tax loss penalty is imposed in the amount of one fold of the tax. A default interest rate of 1.6 percent per month is calculated. In the Tax Procedure Law, for those who do not submit a declaration, two times the 1st degree irregularity penalty is also stipulated.

PAYMENT FROM THE BANK

Housing rents of 500 TL and above must be paid from the bank or PTT. All workplace rents must also be paid from the bank, without any amount limitation.

From 1 July 2017; It has also become compulsory to make payments from the bank or PTT, regardless of the amount, in 'short-term housing rentals' as weekly, daily or similar.

RENT FROM CONTRACTOR

Within the scope of urban transformation, those who give their flat to the contractor can receive rental assistance and additional relocation assistance from the contractor, according to the agreement. Income within this scope collected from the contractor; Not in the form of rental income, but in the form of assistance. In addition, there is no payment for the use of the building. Therefore, since no income is obtained in return for leasing, there is no obligation to submit a declaration and pay taxes.

DAILY - WEEKLY RENT

Finance, daily-weekly rentals; sees it as 'commercial gain', not as rental income (GMSİ). When viewed as commercial gain, taxation differs for the property owner and additional obligations begin. Those who earn rental income (GMSİ) submit an income tax (GV) return once a year. Those who earn commercial income have to fulfill other tax duties, such as the obligation to keep books (in real way), the obligation to submit a regular VAT return (and withholding tax returns depending on the transactions). The reason why daily rentals are seen as 'commercial gain' is that “more income is obtained than long term rental,

THE DIFFERENCE OF LEASING HOMES

There is a situation similar to daily rentals in the rental of summer houses. Taxation varies according to the duration and form of the rent. Income to be declared; Whether it will be rental income (real estate capital income-GMSI) or commercial gain is determined by looking at the above criteria. In other words, if there is a monthly-seasonal rental, it is sufficient to submit a single declaration in March the following year (if it exceeds the exception amount for 2019 revenues).

But; If there is a daily-weekly rental, if the cottage is made ready for use again for the new customer each time (considering that an organization is required for such leases), it is seen as commercial gain. The rental income obtained is not counted as 'GMSİ', but 'commercial income'.

WHICH RATE IS CALCULATED?

The rates of Income Tax start from 15 percent and increase up to 40 percent. (GVK Art. 103) In fact, for many years, the highest rate in income tax (for the tax base exceeding 98 thousand lira) was applied as 35 percent. Now, those with high rental income (for the tax base exceeding 500 thousand lira) will pay 40 percent tax.

Examples of tax rulings given in response to the questions asked by the Ministry of Finance in order to eliminate the hesitation of the citizens who earn rental income regarding taxation can be seen at www.vergidoktoru.com.tr