Income from immovable capital refers to the rental income obtained as a result of leasing ownership or property rights. In this context, a certain tax must be paid on the rights or proprietary rights. The taxation of the said income from immovable capital is carried out according to the principles of the Tax Law. According to the law, real persons are obliged to pay taxes on a regular basis every year regarding their income from real estate rentals. In this sense, the right to pay tax can be used in two equal instalments for two periods of the year. Taxable income can be divided into different segments. Therefore, payments are made at different intervals.
Which Real Estate Income Is Taxed?
When the taxation of income from immovable capital is in question, it is also specified by law which real estate income will be taxed. According to the information in the law, income from real estate businesses such as land or buildings, mineral water, mines, quarries, salt mines are within the scope of this tax. Apart from these, in the taxation of income from immovable capital, income such as trademarks, trade names, technical drawings, cinema or television films, information obtained through industry, trade or science and production, copyrights or derived rental income are also the subject of the tax.
All these incomes obtained during the year or income from previous years is considered earned that year and are subject to tax. In case the rent or income is realized in foreign currency, the exchange rate on the day the income is received is calculated and converted into Turkish Lira, and then the tax to be collected is determined.
How is Taxable Income from Immovable Capital Calculated?
All works and transactions related to the taxation of income from immovable capital are regulated and carried out in accordance with the Revenue Law. All these rights, duties and responsibilities are specified in detail in Article 70 of the said Revenue Law. Income from real estate and its rights are taxed as income from real estate capital. Owners of such taxable property are the holders of the title.
Tenants, that is, those who do not have real property but have the authority to actually dispose of property or rights and those who have the right of easement, can rent and earn capital income. Here, the easement right holders mean the rights that give the others the right to use or benefit from the property belonging to another person or to earn income.