FREQUENTLY ASKED QUESTIONS
Renting homes for tourism purposes is a matter subject to special regulations in many countries. Individuals wishing to rent out their properties for tourism in tourist areas or holiday destinations must adhere to specific legal and regulatory rules. Here are some important considerations to take into account when renting homes for tourism purposes:
A daily house rental permit, also known as a tourism residence permit, will now be issued by the Ministry of Culture and Tourism through e-Government according to the new law. Physical applications are not accepted.
This permit is obtained through an application to the local municipalities to which the property is affiliated. However, the process is quite complex. Especially if you have a small number or a single property for daily house rental, it is more sensible to work with a professional Certified Public Accountant or Lawyer.
VAT is collected at every stage of the production and distribution process from the initial sale by the producer to the final sale to the consumer. At each of these stages, the amount of tax payable is the difference between the total amount of tax charged on the invoices issued by the taxpayer and the total amount of tax charged on invoices issued to the taxpayer during the same period.
Thus, the VAT is initially computed by applying the appropriate rate of taxation to the taxable base for goods and services supplied by the taxpayer during a taxable period.
Then, the VAT previously paid on importation and on goods and services supplied to the taxpayer, is deducted from this amount. In cases, where total amount of VAT subject to deduction within a certain taxation period exceeds total amount of VAT on the basis of taxpayer’s transactions subject to taxation, the difference thereof shall not be returned to the taxpayer but deferred to the subsequent periods.
According to the Turkish tax legislation there are two main types of income taxes, personal income tax and corporate income tax. Personal income tax is levied on income and earnings of real persons (individuals), while corporate income tax is levied on the income and earnings of corporations.
Annual Corporate Income Tax Filing Deadline: The last day of April
Final Payment Deadline: The last day of April
Annual Income Tax Filing Deadline: The last day of March
Final Payment Deadline: The last day of March and the last day of July
Income Provisional Tax (IPT) in Turkey is a pre-paid tax imposed on individuals and corporations based on their earnings throughout the year. It serves as an advance paymenttoward the income tax that will be declared at the end of the fiscal year. Here is an explanation of the Income Provisional Tax:
Prepayment Obligation:
Income Provisional Tax is a tax paid periodically during the year based on the income earned. It acts as a prepayment of the income tax liability to be declared at the end of the fiscal year.
Periodic Payments:
Payments are typically made on a monthly or quarterly basis. The tax collected during theseperiods is later offset against the annual income tax liability.
Previous Year’s Income as a Basis:
Income Provisional Tax is often calculated based on the income earned in the previous year. Taxpayers pay a certain percentage of their previous year’s income as provisional tax.
Income Declaration and Offsetting:
At the end of the fiscal year, taxpayers fill out an Income Tax Return, which includes the total income earned and the Income Provisional Tax paid.
The declared income tax at the end of the year is compared with the total Income ProvisionalTax paid. If the provisional tax exceeds the declared income tax, a refund is issued.
Taxpayer Status and Exemptions:
Income Provisional Tax applies to individuals and corporations subject to income tax. However, there might be exemptions and allowances for certain income groups andconditions.