Turkish tax on Rental Income

[Anne]

I have just been looking at filling in the tax form 1001B, however there seems to be a new one on line, 2013 is printed in tiny print on the bottom left had corner instead of 2011, and page 2 is much longer with an instruction to fill out co-owners details.  The trouble is that page 2 now stretches to page 3 or I could shrink it when printing page 2 so it went on one page, but it would be small type and narrow.  Has anyone picked up the new form from the Kas tax office, if so does it run to page 3 or have they squeezed it onto 2 pages?  They tend to be a bit picky about how the form is printed and friends had one rejected as it wasn't printed back to back so I don't want them to throw mine out.  Or are they still accepting the tax return on a 2011 form?

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=10672.0

[brian j p]

I will be filling in a tax return for first time, purchased property in late 20011 and rented out in 2012 . Our villa is in joint names so I believe I have to do a return for each of us?. We are going out to Kalkan in May and October, so I believe I need to submit first return in March and will have to be done at Turkish Embassy in London. Hopefully I can submit the second return when in Kalkan in October.
 
 I hope I have my facts right, would love to know if anyone has their returns done by an accountant in Kalkan, i,e send them the  info for  them to do on our behalf,  not sure how much it cost though to get an accountant Kalkan to do as have never done before. Also I was slightly confused as to what you are allowed as an allowance. Would I be correct in thinking you take 25% off total income for maintenance ad running costs  and then you are allowed an allowance against the final tax amount for each of the joint property owners. Any info would be much appreciated, as looking at different forums there appears to be differences in opinions as to what   you are allowed as allowances against rental tax

[Kalkan regular]

Hi Brian. We use an accountant in Kas. PM me if you want his information. He works out your tax, fills in your return and pays your tax due and charges 250/300TL. He knocks of 25% and then you get the full personal allowance (a bit less than 3000tl if I remember rightly) and then you pay tax on the rest. As my husband and I co-own our apartment we earn half the rental income each from which he deducts the 25% and then we have the full tax allowance each, we do however then have to pay our accountant a fee each.

[brian j p]

Thanks KR ,  I will send you a PM

[MartynE]

We use an accountant in Kalkan - Ali Tunc.

We have asked him not to use the standard 25% allowance for us; not many people know this but you can elect to deduct actual expenses rather than the flat rate 25% - this works out much better for us; so much so that we pay more in accountants fees than the actual tax itself (!), but by using him we know we are keeping everything above board.

The only problem is that Ali himself doesn't speak great English, but we get by with the help of one or two of his staff.

[Chris S]

It wouuld appear to me that the less tax you pay in Turkey, the more you pay in the UK, or have I misunderstood the situation.
It seems like swings and roundabouts, with no particular advantage to either method of dealing with the Turkish element.
Have I got this all wrong    Help!

[hobbo]

It wouuld appear to me that the less tax you pay in Turkey, the more you pay in the UK, or have I misunderstood the situation.
It seems like swings and roundabouts, with no particular advantage to either method of dealing with the Turkish element.
Have I got this all wrong    Help!

I think you are correct on this, however there are situations where you could pay more tax in Turkey than you would in the UK hence could be worth reducing the tax paid in Turkey.

[Chris S]

A factor in deciding how to deal with Turkish tax depends on whether or not you can obtain receipts for maintenance and repair work - not easy in my experience. Many tradespeople appear to deal on a cash only basis and one can only speculate on the reason for that .

[Jamera]

the double-taxation agreement between UK and Turkey means you should be able to offset any tax you pay in Turkey against your UK tax liabilities ... as long as you have taxable income in on Fereign earnings UK.  So if you have UK losses, then Turkish tax is irrelevant since you cannot offset it

[derek364]

Hi Anne,

I am just about to send my returns in and am intending to use the 3 pages that now print. I translated the form last year using google (which were the first ones we completed) and most of the entries seem straightforward. Can I ask what numbers you put in Tablo - 4. I have put my share of the cost of our villa in the top right hand box (Vergi Degeri) and my share of the gross letting income where it asks for Gayrisafi Irat. Thanks.

[Anne]

Hi Derek

Tablo 4 is the section that has been extended as you will realise. Under Vergi Degeri we put our tapu price, I think is is probably correct that you just put your share of it.  Under Gayrisafi Irat I put my gross income.

The new addition on the 3 page version on the bottom two lines asks for details of a co-owner, the percentage share, tax number and name.

The Turkish Consulate did promise to post a hard copy of the new form to me but as that was nearly 2 weeks ago, I don't think that is going to happen so I guess, like you, I will just print off the 3 page version.

If I haven't answered your question please let me know.

Anne

[Anne]

Just in case anyone is interested, I finally got hold of the new tax form  1001B.  It took 4 weeks for the Turkish Consulate in London to post it to me.  The new form is still 2 pages, back to back, even though more information is requested on page 2  than before.  It might be a bit late for anyone to ask them to post a copy but if you are near London the person who sent the form to me is Mrs S Ramadan from the Office of the Financial and Customs Counsellor which I think is based at the Turkish Consulate in Rutland Gardens, Knightsbridge.  You can pay your tax at the Ziraat Bank in Moorgate as long as you have the Kas tax office bank details