Example 1: Taxpayer (A), living in Germany, leased out his flat in Ankara and obtained
20.000 € as rental income in 2019. He preferred the lump-sum expenses method and he has no other income to declare in Turkey. On the date of collection, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.
Income tax for rental income of taxpayer is calculated as follows:
| Total Gross Revenue (20.000 € x 6 TL) | 120.000 TL |
| Amount of exception | 5.400 TL |
| Balance (120.000 TL-5.400 TL) | 114.600 TL |
| Lump-sum Expenses (114.600 TL x 15%) | 17.190 TL |
| Taxable Income (114.600 TL – 17.190 TL) | 97.410 TL |
| Amount of income tax calculated | 22.600,70 TL |
| Amount of income tax payable | 22.600,70 TL |
| Stamp duty | 89,10 TL |
Example 2: Taxpayer (B), living in Poland, leased out his flat in Antalya and obtained
17.000 $ as rental income in 2019. He preferred the actual expenses method and he has no other income to declare in Turkey. His total actual expense for this house is 4.000 Dollars.
On the date of collection and expenditure, buying rate for Dollar announced by The Central Bank of Republic of Turkey is assumed as 5,5 TL.
Total Revenue = 17.000 $ x 5,5 TL = 93.500 TL Total Expenses = 4.000 $ x 5,5 TL = 22.000 TL
(Taxpayers who have chosen the actual expenses method will not deduct the expense corresponding to the amount subject to exception from their income, but only the expense corresponding to the amount subject to taxation. Thus, first the total expenses corresponding to the total taxable revenue should be determined. Deductible expenses corresponding to the taxable revenue is calculated as follows:)
Deductible expenses = Total expenses x Taxable Revenue*
Total Revenue
*Taxable Revenue = Total Revenue – Amount of exception for rental income from house
= 93.500 – 5.400
= 88.100 TL
Amount of exception corresponding to taxable revenue = 22.000 x 88.100 = 20.729,41 TL (Amount of deductible actual expenses) 93.500
Income tax for rental income of taxpayer is calculated as follows:
| Total Gross Revenue (17.000 $ x 5,5 TL) | 93.500 TL |
| Amount of exception | 5.400 TL |
| Balance (93.500 TL – 5.400 TL) | 88.100 TL |
| Amount of deductible actual expenses | 20.729,41 TL |
| Taxable Income (88.100 TL – 20.729,41 TL) | 67.370,59 TL |
| Amount of income tax calculated | 14.490,06 TL |
| Amount of income tax payable | 14.490,06 TL |
| Stamp duty | 89,10 TL |
Example 3: Taxpayer (C) who does not reside in Turkey and lives in France leased out her office in Bodrum and obtained 10.000 € as rental income 2019. It is withheld 12.000 TL from rental income.
On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.
Total Revenue from workplace (gross) = 10.000 € x 6 TL = 60.000 TL
Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.
Example 4: Taxpayer (D), living in Rome, leased out his flat in Ankara and obtained 7.500 € as rental income in 2019. Also he leased out his office in Ankara and obtained 10.000 € as rental income in 2019. It is withheld 12.000 TL from rental income of workplace. He has no other income to declare in Turkey and preferred the lump-sum expenses method.
On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.
Total Revenue from workplace (gross) = 10.000 € x 6 TL = 60.000 TL
Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.
Income tax for rental income from her flat exceeding the exempted amount is calculated as follows:
| Total Gross Revenue (7.500 € x 6 TL) | 45.000 TL |
| Amount of exception | 5.400 TL |
| Balance (45.000 TL – 5.400 TL ) | 39.600 TL |
| Lump-sum Expenses (39.600 TL x 15%) | 5.940 TL |
| Taxable Income (39.600 TL – 5.940 TL ) | 33.660 TL |
| Amount of income tax calculated | 5.832 TL |
| Amount of income tax payable | 5.832 TL |
| Stamp duty | 89,10 TL |
Example 5: Taxpayer (E), living in Italy, leased out her office in Malatya in 2019 to a taxpayer whose income subject to simple method and obtained 9.500 TL as rental income annually.
She preferred the lump-sum expenses method and income tax for rental income is calculated as follows:
| Rental Income from Workplace | 9.500 TL |
| Lump-sum Expenses (9.500 TL x 15%) | 1.425 TL |
| Taxable Income (9.500 TL – 1.425 TL ) | 8.075 TL |
| Amount of income tax calculated | 1.211,25 TL |
| Amount of income tax payable | 1.211,25 TL |
| Stamp duty | 89,10 TL |
Source: Revenue Administration – Guidebook on Rental Income for Non-Resident Taxpayers
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