The era of paying rent in cash is over.

With the decision of the Income Tax General Communiqué, it has become mandatory for property owners renting out residential or commercial properties to collect rent payments through banks, PTT, or private financial institutions.

CASH PERIOD IS OVER

In this context, collections and payments related to the rental transactions of business and residential properties carried out by income and corporate tax taxpayers, as well as those without any tax registration, will be made through banks or PTT. According to the new decision, property owners and tenants who continue to receive rent in cash will face penalties.

THERE IS A PENALTY

According to the Official Gazette decision, landlords and tenants who do not collect the rent through a bank will be subject to a penalty of 10% of the rent amount for each transaction separately.

In the current communiqué, while penalties were imposed on both the tenant and the landlord in commercial property rentals, no penalties were applied to tenants in residential rentals. With the law passed in July at the Grand National Assembly of Turkey regarding amendments to the Tax Laws and Certain Laws and the Decree Law No. 375, penalties for tenants have also been included in the legislation.