Income derived from the provision of goods and rights to rent is expressed in the Income Tax Law as “real estate capital income” and is subject to income tax on certain conditions.
If the housing income earners receive rent income below the yearly exception amount (exemption amount of TL3,300 for 2014), it is not subject to the rent tax because there is no need to file a tax return and tax return in the tax office. You do not pay rent income for 2014 when your rent income is less than 3,300 TL. This figure has risen to 3,600 TL for 2015.
Every year in the annual rental income of the property, there is a legally exceptional amount set by the Revenue Administration. On the other hand, if the rent income is obtained for the year, the calculation is carried out by deducting the exemption amount for that year.
How much is the housing rental income exception?
If a taxpayer obtains rental income from more than one house, the exemption will be applied once to the total of the rental income. So, the only exception will be applied for a house.
In the case of more than one person in a property, the exemption of TL 3,300 for each partner (for 2014) will be applied separately in the taxation of the rental income obtained from this property.
In addition, the sum of the gross amount of wages, capital gains, real estate capital income and other income and revenues, which are obtained separately or jointly from those who obtained housing rent income of TL 3,300 or more, exceeds TL 97,000 for 2014, will not benefit from exception.
Those who have to declare commercial, agricultural or professional gain besides rent income can not benefit from exception of 3,300 TL.
Those who get rent income of 500 TL per month or more for each residence, renters and tenants (all businesses) of the premises are required to make lease payment transactions via bank or postal administration.