The Period of Withholding Rate Reductions on Real Estate Rentals is Extended to September 30th
Through the promulgation of the President Decree No. 4311 (“Decision”), published in the Official Gazette dated 30 July 2021 and No. 31553, the period of withholding rate reductions on real estate rentals is extended to 30 September 2021.
Through the Decision, it is regulated that 10% withholding will be made instead of 20% for the below mentioned items until 30 September 2021:
- Payments made in return for the lease of the goods and rights stated in Article 70 of the Income Tax Law,
- Rental payments made to foundations (except for chartered foundations) and leases of real estates belonging to associations,
- Rental payments made to foreign states in return of the lease of properties that do not have diplomatic status for foreign public administrations and organizations and international organizations.
Besides, through the President Decision No. 2813, 20% withholding rate was reduced to 10% on rental payments in return for the lease of real estate belonging to the cooperatives. Through the Decision, the period of the rate reduction has been extended until 30 September 2021.
The Decision enters into force on the date of its publication, to be implemented from 1 August 2021 to 30 September 2021.
You may find the full text of the Decision here.
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