Lottery tax refund on rental income


Article by the accountant and independent financial advisor Berkay ÖZGÜVEN of the newspaper Dünya on the subject

Lottery Tax Refund on Rental Income!

Especially in the last period, it is very interesting to earn a rental income.

Many investors prefer the solid path for themselves rather than entering a risky trading environment.

We all know the figures reached by both residential and commercial rents.

Also, you can either file a tax return due to rental income, pay no taxes, and get an additional tax refund.

“That’s all?” do not say. Is happening!

However, this does not apply to those receiving rental income from housing. The refund of taxes for those who receive “rental income in the workplace” is under discussion.

How is residential rental income taxed?

Income obtained from the rental of owned real estate is taxed as real estate capital income (GMSI) (GVK. Art. 70). In the taxation of rental income, there is no distinction such as housing or workplace rent. In both cases, income tax must be paid by filing a tax return.

For the year 2022, 9,500 TL of the revenues obtained within one calendar year from the rental of residential properties are exempt from tax (GVK. Art. 21).

If the annual rental income of the house you have rented exceeds 9,500.00 TL in 202, the excess must be declared with the tax return and the calculated tax must be paid in two equal installments.

How is rental income taxed in the workplace?

The process proceeds differently in workplace rental income than in residential rental income.

First of all, if the gross amount (including withholding tax) of the rents earned from the property rented as a workplace in 2022 and on which the tax has been deducted exceeds 70,000 TL, all this income must be declared. with the annual income tax refund.

Furthermore, for the purposes of determining whether the declaration limit of 70,000 TL has been exceeded, the gross rental income subject to personal income tax deduction and the portion of real estate rental income exceeding the amount exempt from Irpef are considered jointly. In other words, the amount to be declared as a rental income is valid for the entire income, not for the portion exceeding 70,000 TL.

How does the tax refund go into the rental income in the workplace?

Let’s just say that the reason for the return is the withholding (tax deduction) made by the tenants.

As is known, except in special cases (where the workplace belongs to a company, etc.), the tenant makes a withholding tax of 20 percent (tax deduction) on the gross rent by paying the rent.

In practice, the tenant assumes the withholding tax (tax deduction) as the owner of the workplace has agreed with the tenant the “net amount of the rent”. Since the job holder appears to have paid the aforementioned withholding tax, these withholdings are “deducted” from the income tax calculated in the return.

In addition, those who obtain the job rent by making a declaration can choose the lump sum or actual spending method. Taxpayers who choose the one-time shopping method cannot switch to the real expense method unless 2 years have passed.

Those who prefer the real expense method (GVK Art.74), insurance costs of the leased assets and rights, paid by the lessor for the leased property; costs of lighting, heating, water and elevators, depreciation, etc. They can deduct their expenses from their tax return. All these expenses listed; It must be documented, relating to the property which is the object of the income and built by the lessor.

For example, in 2022, those whose “workplace rental income” is 15,000 TL per month, or 180,000 TL of annual rental income, will not pay taxes (due to the deduction of 20% withholding tax). %) when filing a tax return due to this income, they will receive an additional 1,190.00 TL of workplace rental income and will also receive a “tax refund”.

Those who earn TL 17,500 per month and TL 210,000 per year on workplace rental income will pay only TL 375 in income tax due to this income.

How does?

In 2022 the table shows the refund of the tax they will receive or the income tax they will pay, assuming that only those who have a rental income in the workplace will choose the one-time shopping method.

Nobody knew, it turned out.  Refunds to those with rental income.  You will receive both rental income and tax refunds.  Big Good News for Millions of Renters: Lottery for Rental Income Tax Refund - Image: 2

As can be seen from the table, the income tax must be calculated on the rate corresponding to the income tax rate, which is the tax base of the annual rental income you have obtained.

However, the most important detail here is the withholding tax paid by tenants on behalf of business owners. The withholding tax is calculated as 20% of the gross rental amount, as mentioned above. You are entitled to receive a “tax refund” as long as the tax bracket does not exceed 20% in the income tax statement of the total rental income you earn annually.

Furthermore, if during the declaration phase you prefer the flat rate method, it is possible to deduct 15 percent of the rent collected as an expense without the need for any document. In this case, as the tax base will be reduced even more, the amount of tax to be refunded increases in parallel.

So how is a return requested?

Those who will be credited for the withholding tax paid by tenants for the rental income of the workplace should go to the relevant tax office and ask for “restitution”.

The tax office looks for the condition that “withholding taxes have been filed (paid)” in order to be able to return. The taxpayer must submit an application and receive the reimbursement “within one year” from the notification of the taxpayer by the Revenue Agency that the reimbursement will be made. After this time, no refunds will be made.


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