TÜRKİYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
8.5 Tax Benefits Depreciation deductions may be made over buildings, facilities, etc, as per the method and rates determined under the legislation (eg, 2% of the building’s annual value). Moreover, expenses incurred for the respective real estate may also be deducted from the income subject to tax. Additionally, real persons can deduct a flat 15% of the income generated from the lease of real property.
There are no significant exemptions for busi - nesses with respect to real property tax. 8.4 Income Tax Withholding for Foreign Investors Income generated by foreign investors who are not resident in Türkiye is subject to withholding tax (eg, 20% for rental income). Rental income is subject to income tax for real persons and corporate tax for companies. The income tax applicable for real persons varies between 15% and 40% depending on the rental amount and TRY33,000 (applicable for year 2024) of the rental income from residences is exempt from income tax. Corporate tax is paid on the rental income generated by limited liability companies and corporations. General corporate income tax is currently 25%. There is no general tax exemption for income tax and corporate tax accrued on rental income. However, if rental income is generated by a REIF or REIC, the relevant income is exempt from cor - porate tax.
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