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

Tax Regulation Bill Approved by the TBMM General Assembly

The Grand National Assembly of Turkey (TBMM) General Assembly has approved the Law Proposal Amending the Tax Laws and Certain Laws and the Decree-Law No. 631 and has enacted it.

Tax Burden Balancing on Rental Income

This regulation will provide significant ease to property owners. It will allow the interest payments for loans taken to purchase and rent out real estate to be shown as expenses. This aims to eliminate the tax burden difference between those who buy rental properties with loans and those who do not.

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

New Era for Temporary Tax Payers

Those who are temporary tax payers will be able to determine their revenues 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 bill will come into force on January 1, 2025.

Investment Exceptions and Fee Regulations

An exemption from motor vehicle tax is also being introduced for investment monitoring and coordination offices covered by the regulation. These changes will represent an important step in terms of defining fees and exemptions. For instance, vehicles registered in the special administrations of metropolitan cities will be exempt from motor vehicle taxes.

Government's Objectives

With the current regulations, the aim is to increase investments and prevent tax erosion. Additionally, various changes such as increasing insurance premium rates and retirement contributions will also be introduced during the regulation.

Summary and Goals

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