Deduction of Expenses in the Actual Expenses Method
Taxpayers who have opted for the lump sum method can, after deducting the amount of exception from their rental income, set off the lump sum expenses at 15% of the remaining amount against actual expenses.
It is not possible to opt for lump sum expenses method in the case of leasing rights. For instance, taxpayers, who gain office rental income and income from leasing rights, should choose actual expenses method since they should declare rental income from leasing rights at their tax return.
Taxpayers who have chosen the lump sum expenses method cannot choose actual expenses method before two years have elapsed.
Lump sum expenses rate is determined at 15% of the revenue to be applied to rental income from 1/1/2017.
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