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.
Those people and enterprises 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. For example; when the rent is paid in advance for 3 months or 1 year for a workplace, the total rent paid will be subject to tax withholding.
If tenants are taxpayers whose commercial earnings determined according to simple method, they shall not withhold in rental payments.
In case that the immovable property leased out is used both as house and workplace; the total rent is subject to withholding as long as it is used as workplace partially or in whole.
Source: Revenue Administration -Guidebook on Rental Income for Non-Resident Taxpayers
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