The law proposal containing tax regulations was approved in the Grand National Assembly of Turkey.

Tax Regulations Passed by the TBMM Plan and Budget Commission

The Grand National Assembly of Turkey (TBMM) Plan and Budget Commission has accepted the proposal for changes to the Tax Laws and Certain Laws and the Decree Law No. 631 that includes significant regulations regarding taxes.

Changes Made to the Income Tax Law

This regulation, bearing the signatures of AK Party deputies, will present important innovations in the Income Tax Law. The exemption on the incomes of buildings rented out as residences will be revised for individuals retired from social security institutions. This regulation will come into effect on January 1, 2026.

Improvements for Rental Income

It is aimed to ensure tax equity among rental property owners by allowing those who purchase real estate through loans to deduct the interest paid as an expense. Additionally, debts incurred for properties rented out, excluding residences, will be regulated to apply to the income for the year 2025.

Innovation in Temporary Tax Liability

Temporary tax payers will have the opportunity to determine their earnings in 3, 6, 9, and 12 month periods. With this system, the fourth temporary tax period will also be processed.

Exemption and Fee Regulations

Changes made in the Motor Vehicle Tax Law and the Fees Law foresee the exemption from title deed fees for the acquisition and sale of immovable properties by investment monitoring and coordination departments.

With these regulations, if it is determined that the payment was made at a value lower than that of the property tax, the tax loss penalty will be applied as one time instead of %25. Furthermore, various fees will be collected annually; for example, the license fees for private healthcare institutions are set at 20,000 lira.

New Regulations Valid from 2026

Temporary tax liabilities will be effective from January 1, 2026. In addition, progress will be made towards goals such as large-scale borrowing and grant supports as well as the preservation of employment.

In Conclusion

In this context, the amendment to the Law on the Regulation of Public Finance and Debt Management aims to increase the net borrowing usage amount to enhance the Treasury's cash reserves.