Incomes obtained from renting of the property and rights which are stated in the Income Tax Law No.193 is defined as “income from immovable property and rights” and are subject to the income tax in certain conditions.
The liable persons of immovable property’s income are the owners, tenants (persons having the rights to use actually), possessors, servitudes and usufruct right owners of the property and their tenants in the event of leasing of a rented property and rights.
PROPERTY AND RIGHTS WHICH ARE SUBJECT TO RENTAL INCOME
Property and rights which are subject to the rental income are defined in Article 70 of the Income Tax Law. They are mentioned as;
• Land, building (Rental fees for furniture are included in those rented as furnished.), mineral water and underground water sources, mines, stone pits, production places of sand and gravel, brick and tile fields, saltworks and their component parts,
• Large fishing net fields and fishponds,
• Component parts of immovable properties leased separately and all their installations, inventory stock and flooring,
• Rights registered as immovable property,
• Searching, operating and franchise rights and their licenses, patent right, trademark, commerce title, any kind of technical drawing, design, model, plan and cinema and television films, audiotapes and videotapes, a secret formula belonging to an experience acquired in industry, commerce and science or rights as right of usage or privilege of usage on a production method,
• Ships and shares of ship and all the motorized shipment and unloading vehicles,
• Motorized transfer and draw-frame vehicles, any kind of motorized vehicle, machine and installation and their appurtenance.
The shares received from the income of the foundation not in return for services and the income of landowners who only receive a share of the product without participating in agricultural activities will be taxed as real estate capital income.
Source: Revenue Administration of Türkiye
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