Rental Income Tax

[Enjoy Kalkan]

Hi,

I am certainly no expert but for those people thinking of using EnjoyKalkan to advertise their properties for rental, please find below some rental income tax guidelines

click here for guides

Obviously if anyone has any more info on the subject please do post on here

Thanks

Jon

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=1279.0

[felicity]

Just to add that you must declare your rental income in turkey - the tax people were out knocking on villa doors last year - not sure that they are this year - but even so - it is not worth the hassle....even if you need not declare nor pay any income tax in the UK - especially if your expenses outweigh your income (like ours does - by a considerable amount) - as you have generated an income in turkey - you have to pay tax.  Ali Tunc in town can prepare the tax return for you and I understand that if your Tapu is in joint names then you get 2 allowances..!! 

Cheers!

[Chucky]

Are there any other accountants in Kalkan, Kas or Fethiye ?

[Enjoy Kalkan]

Thanks for the extra info TheFeds

The PDF guide is the latest one available from the Turkish authorities - I shall update when a new one is available.

[Kulenin Evi]

Just to say we have used Ali Tunc for a few years for sorting out tax on rental income and each time I have asked about offsetting allowable expenses against income he has told me I can''t do it.  I am due to see him in May to collect our latest tax certificate and will ask him again but as his English is not good and my Turkish is non existent I don''t expect I will get anywhere with this again.  If anyone has experience of offsetting alowable expenses I would be grateful for advice on how to sort this out.

[felicity]

Good point Kulenin Evi..we too have not been told anything about offsetting allowable expensese against income by Ali...  All we have been told to provide is the amount of rental income earned and then the tax is worked out on that - given our tax allowance each and that''s it...likewise any ammunition on how to claim this would be more than useful..!!

Cheers!

[felicity]

Oh and another point - he too has just put up his fee for doing this..by about £50 (I can''t recall the fee as Im not good with numbers so not sure of the amount..) but ostensibly due to the poor exchange rate....but in my view - more jumping on bandwagon especially given the scare/shake up that the villa owners had last year from the tax inspectors... 

[Kulenin Evi]

Just to add that when I asked Ali last time about expenses I understood him to say that private individuals could not claim allowable expenses, however I may very well have misunderstood him and I have not been able to find any reference to that in any of the documents  about the tax system.  Next time I see him I will see if I can persuade someone who speaks Turkish and English to go with me.

Pity he has put up his fees, the calculation he does is very simple.

[kalkanfan]

I have heard that it is possible to claim expenses against rental income, although I don''t know what expenses the Turkish tax system allows.  As an alternative to claiming expenses there is an option of a fixed deduction of 25% of the rental income.  As I''m not a villa owner I''ve no need to find out more but it may well be worth those of you who are asking your turkish accountants if this is still the case.

[lynda]

We worked our turkish tax out last year claiming expenses but were told by Ali that only people running hotels could claim expenses and that villa/apartment owners were only able to claim the fixed 25% deduction.

[Chucky]

I have read that you can claim associated costs on an investment property (not a holiday home). It does not have to be a business, it can be in your personal names but it has to be an investment, not a 2nd home used only by you and your family.As long as it is not your only home and as long as you rent it out or have it available for rent for most of the year.
I do not know if this is info relates to Turkish Tax, but I was lead to believe it does.
Has anyone used a different accountant and been given different advice?

[Ahsap Man]

There is an article in the Fethiye Times, link below,  which outlines the tax position, it say''s that both actual and lump sum (25%) expenditure can be used, but if the lump is chosen you have to wait 2 year before you can revert to actual.  Makes for interesting reading, the article is from this month, but not sure about the tax guidelines.

http://www.fethiyetimes.com/

[Christine Kalkan]

We look after some properties in Kalkan and have been approacehed by the tax department in Kas to give a list of where we are looking after and how many weekd they were let for in 2007. So it looks like they are going to be clamping down again this year.

[Anne]

Hi

I know this is an old thread but I am sure somewhere on the Forum I read that you can sort out the tax yourself instead of going to an accountant.  I think the suggestion was that going to the tax office in Fethiye was the best idea.  As I am now in Kalkan and going to Fethiye shortly I thought I might try to sort it out.  Can anyone point me to the correct thread or enlighten me about where in Fethiye to go or give me any other tips on DIY rental income tax.

Many thanks

[baclava]

In Ali Tunc''s office is a young man who speaks English, so there should be no need to take along a Turkish speaker. We did this the first year of dealing with him, but this year I dealt with the young man (whos name escapes me).

[Em1]

Hi
In my experience this man does not speak much English. The man translates your sentence for you, Ali speaks for 10 minutes, and the man comes back and says ''yes'' or ''no''! Six months later when you have a problem you go back, and surprisingly no one has any recollection of this conversation.

I think I have heard on the grapevine that there will be a new accountant in Kalkan next year, who speaks perfect English!

This post is ''just my opinion'' and not meant to cause any offense.

Em