The Treasury took to the field and initiated an inspection in residential properties regarding rental income. The Revenue Administration Presidency conducted actual inspections in 425 thousand residences, resulting in 376 thousand new taxpayers submitting declarations.

Income tax returns are filed every March.

Annual income tax returns for commercial, agricultural, and freelance earnings, as well as rental, wages, capital gains, and other incomes obtained in 2024 must be submitted by Wednesday, April 2nd. Finance and Treasury Minister Mehmet Şimşek commented on the matter. Emphasizing that the fight against informal economy activities will continue uninterrupted this year as well, Şimşek stated, “By using advanced analysis techniques to prevent informal economic activities and ensure tax fairness, we will identify potential risks related to relevant sectors and areas. Increasing actual field tax audits will establish a perception of tax inspection among taxpayers.”

“We Heavily Utilize the Clarification Invitation” Şimşek stated that they have started to heavily utilize the clarification invitation institution, adding, “We individually invite taxpayers evaluated to cause tax loss to explain themselves. The declaration period for 2024 earnings has begun. Proper declaration of earnings holds significance in terms of ensuring tax fairness. We expect maximum sensitivity from our taxpayers regarding tax compliance. I have entrusted the managers of the Revenue Administration Presidency with visiting all provinces. Our colleagues meet with non-governmental organizations to explain the importance of accurate declarations and our determination in the fight against informal economy.”

ACTUAL INSPECTION IN RESIDENTIAL PROPERTIES The Revenue Administration Presidency, which received approximately 1.8 million declarations on rentals, wages, capital gains, and other earnings last year, expects this figure to exceed 2 million this year through its efforts. The Presidency analyzed approximately 1.5 million residences to identify taxpayers to declare rental income earned in 2024, conducting actual inspections in 425 thousand residences. This resulted in 376 thousand new taxpayers submitting declarations. 38 thousand forms were filled out by tenants on a voluntary basis with the Rental Declaration Form obtained from the Digital Tax Office. It was noted that there are 20 thousand taxpayers who did not submit rental declarations, leading to legal action. Thus, a 26% increase was observed in the number of taxpayers who submitted declarations in 2024 compared to the previous year.

EXAMINATION FOR NOT DECLARING RENTAL INCOME AT ITS TRUE VALUE With the declarations submitted by these taxpayers, there was a 107% increase in declared base income to 399.2 billion liras and a 101% increase in calculated tax to 126.9 billion liras compared to the previous year. The study led around 55 thousand taxpayers to submit rental declarations for previous years, declaring a rental income of 3.1 billion liras. The Presidency will continue similar efforts this year. Therefore, an inspection process will be initiated for those who do not declare rental income at its true value. With these steps, 3.7 million income tax returns were Collected in 2023 and 4.4 million in 2024. The Presidency aims to exceed the 4.4 million declaration count this year as well. REMINDER TO TAXPAYERS VIA SMS The Presidency sent SMS messages to 1.5 million people, informing them of the requirement to submit declarations due to taxable earnings. SMS messages were sent to those earning rental income above the exemption limit, those with wages exceeding 3 million liras from a single employer, those earning taxable capital gains from real estate transactions within 5 years, and those receiving dividend-based capital gains. The Presidency also reminded 2.9 million current income tax payers of the declaration period via SMS.