At the adding up income, losses arising from part of the sources of income (except those arising from other income and gains written in Article 80 of the Income Tax Law) are deducted from the gains and losses of other sources.

Any decrease occurring in the capital itself which is subject to income from immovable property is not considered as loss and is not accepted as expense when determining the gross income amount.

Losses arising from the expenditure surplus in the calculation of the net amount of income from immovable property can be deducted from income to be declared in the following years not for more than 5 years.

There are two exceptions for this rule:

• In the event of any loss resulting from deducting the amount of the rent of the house or lodging paid by the lessor from the rental income of their house, such loss cannot be subject to deduction from the income from immovable property to be obtained in the following years.
• Non-deductible part of the amount corresponding to 5% of the acquisition value which has been subject to deduction of income from the one immovable rented as house is not considered as an expenditure surplus.

Accordingly, it is not possible to consider an expenditure surplus as loss in these situation.

TAX WITHHOLDING IN RENTAL PAYMENTS

Persons, corporations and entities who rented property and rights in accordance with Article 94 of Income Tax Law are obliged to withhold income tax on the gross amount of payments made for rent.

Persons, corporations and entities in question that are tenants have to withhold income tax from the gross amount of their rental payments at the rate of 20%.

This withholding tax will also be made from the rent paid in advance for the upcoming months and years.

If tenants are taxpayers whose earnings are determined in the simple earning basis; Since they have not obligation to withhold taxes, they will not withhold on rent payments.

In case the immovable property leased out is used both as house and workplace; the total rent is subject to the withholding tax as long as it is used as workplace partially or in whole.

Source: Republic of Türkiye Revenue Administration
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

2- WHAT ARE THE RIGHTS AND DUTIES OF GENERAL ASSEMBLY?
2.1- General Assembly makes decisions in accordance with the provisions of the related law.
2.2- With the exception of nontransferable rights and duties, above mentioned rights and rules of general assembly cannot be transferred.
2.2.1- The change of main agreement.
2.2.2- The election of the members of board, the detection of durations, payments and per Diem, the decision on discharges and dismissals.
2.2.3- Except for the exceptions on the law, the election of inspector and dismissals. 2.2.4- Decision on financial tables, annual report of the members of board, savings out of annual profit and on the detection of Premium and including gaining of the margin of the joining of contingency reserve to the capital or profit sharing.
2.2.5- Dissolution of the company not in accordance with the provisions of the relate law.
2.2.6- Wholesale of company’s assets.

2.3- In corporate companies with one shareholder, has the every right of general assembly. It is mandatory that decisions regarding general meeting made by the

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Source: Turkish Trade Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.