Individual Tax Advisory Services in Turkey

Navigating Turkey’s tax system can be particularly complex for individuals with diverse income sources, especially those who meet specific residency criteria or derive income from rental properties or employment. Individual tax advisory services in Turkey offer personalized solutions to ensure compliance, optimize tax liabilities, and manage financial obligations effectively.

Residency Criteria: 183-Day Rule

In Turkey, tax residency is determined by the 183-day rule. Individuals who spend 183 days or more in Turkey during a calendar year are considered tax residents. Tax residents are subject to taxation on their global income, while non-residents are taxed only on their Turkish-sourced income.

• Implications for Expats: Expatriates living in Turkey for 183 days or more must comply with local tax laws, including filing tax returns for income earned both domestically and abroad.
• Planning Opportunities: Proper planning can help expatriates leverage tax treaties and avoid double taxation.

Taxation of Rental Income in Turkey

Rental income derived from properties in Turkey is subject to personal income tax. Key considerations include:

1. Taxable Income
   Rental income is subject to progressive tax rates, with specific exemptions available based on the type and value of the property.

2. Deductions
   Individuals can deduct allowable expenses such as maintenance costs, property management fees, and insurance premiums to reduce taxable income.

3. Filing Requirements
   Rental income must be declared annually, with accurate documentation of all related expenses.

Taxation of Employment Income in Turkey

Individuals earning salaries in Turkey are subject to income tax, which is withheld at source by employers. Key points include:

1. Progressive Tax Rates
   Employment income is taxed progressively, with rates ranging from 15% to 40%, depending on the income level.

2. Allowances and Exemptions
   Certain allowances, such as meal and transportation benefits, may be partially or fully exempt from tax.

3. Cross-Border Employment
   For individuals working for foreign employers or earning income abroad, tax treaties play a crucial role in avoiding double taxation.

Challenges in Individual Tax Compliance

• Determining residency status under the 183-day rule.
• Accurately calculating and reporting rental and employment income.
• Navigating tax treaties for expatriates and individuals with cross-border income.

How KEYBIZ CPAs & Advisors Can Help

At KEYBIZ CPAs & Advisors, we provide tailored individual tax advisory services in Turkey to help individuals meet their tax obligations and optimize their financial strategies. Our services include:

• Residency Advisory: Assessing tax residency status and its implications under Turkish tax laws.
• Rental Income Support: Assistance with calculating deductions and filing tax returns for rental income.
• Employment Income Guidance: Ensuring compliance for salaries and benefits, including cross-border tax advisory.
• Tax Treaty Expertise: Leveraging international agreements to avoid double taxation.

Conclusion

Managing personal tax obligations in Turkey requires expert knowledge and strategic planning, especially for expatriates, individuals with rental properties, and those earning salaries. By partnering with KEYBIZ CPAs & Advisors, you can navigate the complexities of Turkish tax laws confidently and achieve your financial goals.

Contact us today for professional support with individual tax advisory services in Turkey, including residency, rental income, and employment tax matters!