14.03.2025 11:21
A new era has begun in the housing sector. Tighter inspections are now being implemented for rental properties. In the new practice, personnel from the Ministry of Treasury and Finance are going out into the field to inspect properties one by one. An investigation process will be initiated for those who do not declare rental income based on its actual value.
According to the data from the Ministry of Treasury and Finance, annual income tax returns are submitted every March. The annual income tax returns related to commercial, agricultural, and freelance earnings, as well as rental income, wages, capital gains, and other earnings obtained in 2024 must be submitted by Wednesday, April 2.
Minister Şimşek made an assessment on the subject to AA correspondent. Emphasizing that the fight against unregistered economic activities will continue uninterrupted this year, Şimşek stated, "We will use advanced analytical techniques to identify potential risks related to the relevant sectors and areas in order to prevent unregistered economic activities and ensure fairness in taxation. By increasing actual field tax audits, we will ensure that the perception of tax audits is established among taxpayers." he said.
"WE ARE USING THE 'INVITATION TO EXPLANATION' INTENSIVELY"
Stating that they have started to use the "invitation to explanation" institution intensively, Şimşek continued: "We are inviting taxpayers who are considered to cause tax loss to explain themselves one by one. The declaration period for the 2024 earnings has begun. It is also important for the fairness of taxation that the earnings obtained are declared correctly. We expect maximum sensitivity from our taxpayers regarding tax compliance. I have assigned the managers of our Revenue Administration to visit all provinces. Our colleagues have met with civil society organizations, explaining the importance of making accurate declarations and our determination to combat unregistered activities.
DOOR-TO-DOOR INSPECTION PERIOD
Last year, the Revenue Administration (GİB) received approximately 1.8 million declarations from rental income, wages, capital gains, and other earnings, and it expects this number to exceed 2 million this year with the work it is carrying out. In order to identify taxpayers who need to declare rental income in 2024, the administration analyzed approximately 1.5 million residences and conducted actual inspections in 425,000 residences. In this context, 376,000 new taxpayers were ensured to submit declarations.
With the "Rental Notification Form" obtained from the Digital Tax Office, tenants voluntarily filled out 38,000 forms. According to these, it was found that there were 20,000 taxpayers who did not submit rental declarations, and legal action was taken. Thus, there was a 26% increase in the number of taxpayers submitting declarations in 2024 compared to the previous year.
INVESTIGATION FOR THOSE WHO DO NOT DECLARE RENTAL INCOME AT ITS TRUE VALUE
With the declarations submitted by these taxpayers, a total of 399.2 billion lira was declared as the tax base, which is a 107% increase compared to the previous year, and 126.9 billion lira was calculated as tax, which is a 101% increase. The work ensured that nearly 55,000 taxpayers submitted rental declarations for previous years. With these declarations, 3.1 billion lira of rental income was declared. The administration will continue similar efforts this year. In this context, an investigation process will be initiated for those who do not declare rental income at its true value. With the steps taken, 3.7 million income tax returns were received in 2023, and 4.4 million in 2024. The administration aims to exceed the number of 4.4 million declarations this year as well.
SMS REMINDER TO TAXPAYERS
The administration sent SMS messages to 1.5 million people, informing them that they need to submit declarations due to income subject to income tax. In this context, SMS was sent to those who obtained rental income above the exemption limit, those who earned over 3 million lira in wages from a single employer, those who obtained capital gains income due to real estate transactions within the last 5 years, and those who obtained capital gains from dividend sources. The administration also reminded 2.9 million taxpayers who are still income tax taxpayers about the declaration period via SMS.