The Grand National Assembly of Turkey approved the bill containing new tax regulations.

Tax Regulations Bill Approved in the TBMM General Assembly

The General Assembly of the Grand National Assembly of Turkey (TBMM) has passed the Law Proposal Amending Tax Laws and Some Laws and the Decree-Law No. 631, making it a law.

Tax Burden Balancing on Rental Income

This regulation will provide significant ease for property owners. It will allow the deduction of interest paid on loans for properties purchased with loans and rented out. This aims to eliminate the tax burden disparity between those who purchase rental properties with loans and those who do not.

In terms of rental income, an allowance of up to %5 discount on interest expenses payable for properties and rights rented out, excluding residences, will be applicable. This new implementation will come into effect on January 1, 2025.

New Era for Temporary Tax Payers

Those with temporary tax liabilities will be able to determine their income for 3, 6, 9, and 12 month periods. With this regulation, the fourth temporary tax period will be included in the system, and tax declarations will cover the relevant period.

The proposal will come into effect on January 1, 2025.

Investment Exemptions and Fee Regulations

The regulation brings exemption from motor vehicle tax for investment monitoring and coordination directorates as part of its scope. These changes will signify an important step in terms of defining fees and exemptions. For instance, vehicles registered to local administrations in metropolitan cities will be exempt from the motor vehicle tax.

Government's Objectives

Through the current regulations, the aims are to increase investments and prevent tax erosion. Additionally, various changes will be introduced throughout the regulation, such as increasing insurance premium rates and retirement contributions.

Summary and Goals

With these significant regulations recently approved by the TBMM, the primary objectives are to eliminate the injustices in the tax system, strengthen the investment climate, and support the economy.