Who Needs to Submit a Rental Income Statement by March 31, 2023?

Tax season alert: Rental property owners must submit this statement by March 31s

Suppose you earn rental income only from real estate capital gains. In that case, you must declare the total rental income you received between January 1, 2022 and December 31, 2022, including rental income from previous years, in accordance with Article 86 of the Income Tax Law. Here’s how it works:

Those whose total residential rental income in 2022 exceeds the exemption limit of 9,500 TL will need to submit an annual real estate capital gains tax return for that income.

For rental income from shared residential properties, the rental income is calculated based on the share and the exemption of 9,500 TL is applied to that amount.

If an inheritance is not yet distributed, each heir will be entitled to benefit from the exemption separately.

Those whose total gross business rental income, subject to withholding tax, exceeds 70,000 TL will need to submit a tax return for that income.

Individuals with both residential and business rental income

Individuals with both residential and business rental income will only declare non-withheld residential rental income if the residential rental income exemption amount is exceeded by the total amount of income subject to income tax withholding from the business rental income, provided that the total of these incomes does not exceed 70,000 TL (whether the 70,000 TL declaration threshold is exceeded or not will be determined by taking into account the sum of taxable capital gains, multiple employment income and income subject to withholding tax from securities and real estate capital gains).

If the total exceeds 70,000 TL, all income must be declared.

Those who earn rental income from other assets must also submit a tax return.

The rental income of spouses and children will be declared separately.

Withholding tax will be deducted from the income tax calculated on the tax return.

Income taxpayers must submit their 2022 income tax returns to the relevant tax office by March 31, 2023, at the latest. The first installment of the accrued tax will be due by March 31, 2023, and the second installment will be due by July 31, 2023.

Table:

Income Type	The threshold for Filing Tax Return
Residential Rental	Exceeding 9,500 TL
Business Rental	Exceeding 70,000 TL
Other Assets	Exceeding 3,800 TL

Subtitle: Learn about the rental income tax return deadline and thresholds for various types of income