Declaration of Rental Incomes (GMSI) Obtained in 2022 and Sample Applications
Rental incomes, which are referred to as “Real Estate Capital Income” (GMSI) in tax law and obtained by individuals, can be declared by the end of March and can be paid in two equal installments of income tax calculated on this income, one in March and the other in July.
The subject of this circular is the declaration of residential and commercial rental incomes obtained by individuals.
In summary, in the March 2023 period:
Those who have earned more than 9,500 TL of residential rental income in 2022 will declare their income. The exemption amount applied for 2022 is 9,500 TL and only those who earn residential rental income can benefit from this exemption. The exemption will only be applied for a single residence, and for those who earn multiple residential rents, the exemption will be applied once to the total rental income. Those who do not declare or insufficiently declare their rental income will not be able to benefit from the exemption. Individuals subject to income tax in the real regime, commercial and agricultural income owners, and self-employed professionals cannot benefit from the residential rental income exemption. Those whose gross amounts of salary, capital income, real estate capital income, and other earnings and income separately or together exceed 250,000 TL, including residential rental income of 9,500 TL or more obtained in 2022, will not be able to benefit from the 9,500 TL residential exemption. Those whose commercial rental income has a gross amount exceeding the declaration limit (70,000 TL for 2022), for which tax deduction is made, will declare their income. (In determining whether the declaration limit of 70,000 TL has been exceeded, the part exceeding the income tax-exempt amount of the gross rental income subject to income tax deduction and the residential rental income will be considered together.) Those who will declare their income for salary, rent, capital income, and other earnings and income can control their declarations from the “Fill Declaration” menu in the “Ready Declaration System” and approve their declarations after making the desired changes. Those who do not want to use the Ready Declaration System can submit their declarations in paper format to the tax office they are affiliated with (where their residence is located) or through electronic declaration by signing an electronic declaration contract with authorized professionals until March 31, 2023.
- When is Rental Income Considered Obtained?
The rental payments received in cash or in kind by taxpayers within a calendar year for that year or past years will be considered income obtained in that year. For example, if the rental incomes of 2021 and 2022 are collected together in 2023, they will be considered as income in 2023.
However, rental payments collected in advance for future years are considered as income for the relevant year and are declared in the relevant years. For example, if the rental incomes of 2022, 2023, and 2024 are collected together in 2022, they will be declared separately for each year.
