The Revenue Administration of the Ministry of Treasury and Finance (“Revenue Administration”) published in Official Gazette No. 32695 dated 17/10/2024 the Income Tax General Communiqué (Serial No. 328) (“Communiqué No. 328”), establishing documentation procedures for commercial and residential rental payments and penalties for non-compliance.
This briefing examines the possible effects on existing tenancy agreements and the obligations introduced by Communiqué No. 328.
I. Scope
The Communiqué applies to transactions by (i) income taxpayers, (ii) corporate taxpayers and (iii) persons who are not taxpayers, covering all receipts and payments for commercial and residential rentals, including weekly, daily and similar short-term housing rentals. Under Article 2(3), payments made through courts or enforcement proceedings or in kind are excluded. Thus all landlords’ and tenants’ commercial and residential rent payments fall within the Communiqué, regardless of taxpayer status.
II. General Principles
Under Article 2(1), all landlords and tenants, regardless of taxpayer status, must make residential and commercial rent payments through banks specified in Law No. 5411 or the Post and Telegraph Corporation (“PTT”). Under paragraph 5, receipts or account statements from banks or PTT are accepted as documentation. For jointly owned property, payment of the full rent to one landlord through a bank or PTT satisfies the requirement.
III. Sanctions
Each person failing to comply is subject, for each transaction, to a special irregularity penalty under the Tax Procedure Law No. 213 (“VUK”), repeated Article 355. The minimum amounts are:
– TRY 20,000 for first-class merchants and self-employed professionals,
– TRY 10,000 for second-class merchants, farmers keeping accounts and persons assessed under the simplified regime,
– TRY 5,000 for all others.
The penalty is 10% of the transaction amount, subject to those minima. Minimum and maximum amounts and penalties are adjusted annually from the start of the calendar year using the previous year’s revaluation rate under the Tax Procedure Law. The total special irregularity penalty in one calendar year may not exceed TRY 20 million.
Article 3(4) introduces a relief similar to voluntary disclosure and correction: if a payer voluntarily reports a non-compliant payment within five working days, no special irregularity penalty under this rule is imposed on that payer alone.
IV. Effects on Existing Tenancy Agreements
Existing tenancy terms requiring payment outside banks or PTT can no longer lawfully be applied. Such agreements must be amended to comply with Communiqué No. 328, by agreeing that rent will be paid through banks or PTT. Even if landlords refuse an addendum, we consider existing cash-payment clauses invalid because cash payment is now sanctioned, allowing tenants to use alternatives.
However, PTT’s 2024 tariff sets a TRY 10,000.00 limit for transfers delivered to an address, so rent exceeding that amount cannot be sent through that service.
If the landlord withholds bank details or insists on cash, we consider it appropriate first to send rent by PTT delivery to the address. If no IBAN is provided or the PTT payment is refused, the tenant must apply to the court under the relevant provisions of Turkish Code of Obligations No. 6098 for designation of a place of deposit.