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Rental exemption Compliant taxpayer reduction

The exemption, which is valid only for housing rental income, This reduction application is valid for taxpayers who submit
is applied as TRY 9 thousand 500 for 2022 incomes. Those their declarations on time, do not have tax debt and do not
who rent a house below this amount in 2022 do not submit a have a finalized assessment for previous years. 5% of the
declaration. The exemption amount for 2023 incomes is TRY tax calculated on annual income or corporate tax returns is
21 thousand. deducted from the income or corporate tax payable.
Declaration threshold
The amount of the reduction cannot exceed TRY 2 million
The limit amount used in the declaration of movable and real for the declarations submitted in 2022. This limit will be
estate capital gains subject to withholding (tax deductions), applied as TRY 4 million 400 thousand in annual income and
such as dividend income, workplace rental income or wage corporate tax returns that must be submitted as of January
income from more than one employer, is also increased 1, 2023.
according to the revaluation rate. This amount, which is TRY
70 thousand for 2022 revenues, is being increased to TRY Not only that, of course. Many amounts such as irregularity
150 thousand for 2023 revenues. and special irregularity penalties, various exemptions and
reductions, bookkeeping rates according to the balance sheet
For real estate and securities capital gains (such as foreign method, stamp duty and fees charged as fixed (quantitative)
bank interest income) that are not subject to any withholding will be applied by increasing it by 122.93 percent in 2023 or
or exceptions, the declaration limit, which is TRY 3 thousand a different rate to be determined by the President.
800, will be applied as TRY 8 thousand 400 in 2023.

Sales of immovables This is the summary of the article published in the
Ekonomist magazine’s issue 2022/24, dated 27.11.2022.
Except for the sales made within the scope of commercial
activities, income tax is not paid on the income obtained from
the real estates sold after being held for at least 5 years.
If a profit exceeding TRY 25 thousand (for the year 2022) Depreciation practices during
is obtained from the properties sold before the end of the transition to special accounting
5-year period, the income tax calculated by declaring the
excess amount must be paid. In 2023, the exemption amount period
for the income from real estate sales made within this scope
is TRY 55 thousand. According to tax legislation, although the principle of taxation
on a calendar year basis is accepted, in terms of income and
Invoice and depreciation limit corporate tax, taxpayers have the opportunity to request
taxation according to the special accounting period in
Invoice issuance limit, which was applied as TRY 2 thousand exceptional cases.
in 2022 and the limit for fixtures that can be recognized
directly as expenses, will be applied as TRY 4 thousand 400 In such a case, depreciation practices are significant for the
in 2023.
pro-rata accounting period from the first day of the year to
Limitation on personal car expenses the starting date of the special accounting period and the
special accounting periods.
The amounts applied in 2022 related to passenger car
2023 year
2022 year
expenses and the 2023 amounts calculated by increasing the In the Serial No. 245 General Communique on Tax Procedure
(TRY)
(TRY)
revaluation rate are summarized in the table below: 17,000 Law, it is explained that pro-rata depreciation can be allocated
8,000
Monthly leasing expense of passenger car
during the transition to the special accounting period or in the
Total VAT and SCT which can be recognized pro-rata accounting periods that occur during the conversion
as expense for the initial acquisition of 200,000 440,000
passenger car from the special accounting period to the calendar year basis.
Portion, which can be taken into account
as expense, of expenditures regarding 70% 70% In the advance rulings given by the administration, it is stated
passenger cars (such as fuel, repair, that these pro-rata accounting periods for which depreciation
maintenance) is allocated should be taken into account as a separate year
Depreciation cap for passenger cars in the calculation of the amortization period. It additionally
- Those capitalized excluding SCT and VAT 230,000 500,000 dictates that the residual value corresponding to the period
without depreciation in the accounting periods for which pro-
- Those capitalized through adding SCT
and VAT to cost (including second-hand 430,000 950,000 rata depreciation is allocated should be amortized in the last
purchases) year of the amortization period.
Since the pro-rata accounting period is considered a separate
year, in the calculation of the economic life of the economic
asset, full-year depreciation is required for the economic
assets that will be amortized in the year to which the pro-rata
accounting period belongs.

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