The Ministry of Finance took action and initiated inspections in houses focusing on rental income. The Revenue Administration conducted actual inspections in 425 thousand homes, leading to 376 thousand new taxpayers filing tax returns.

Annual income tax returns are submitted every March.

Income tax returns related to commercial, agricultural, professional income, as well as rental, wages, capital income, and other earnings for the year 2024 must be submitted by Wednesday, April 2nd. Minister of Treasury and Finance Mehmet Şimşek provided an assessment on the issue. Emphasizing that the fight against informal economy will continue uninterrupted this year, Şimşek stated, “By using advanced analysis techniques to prevent informal economic activities and ensure tax justice, we will identify potential risks related to relevant sectors and fields. Increasing on-site tax inspections will help establish a perception of tax audits among taxpayers.”

“We are intensively using the explanation request mechanism,” Şimşek stated, adding, “We invite individual taxpayers who are deemed to cause tax loss to provide explanations. The declaration period for the year 2024 incomes has begun. Correctly reporting the earned income is crucial for tax justice. We expect maximum sensitivity from our taxpayers regarding tax compliance. I have instructed the managers of the Revenue Administration to visit all provinces. Our colleagues meet with non-governmental organizations, explaining the importance of accurate declarations and our determination in combating informality.”

ACTUAL INSPECTIONS IN HOUSES

The Revenue Administration, which received approximately 1.8 million declarations related to rent, wages, capital income, and other earnings last year, expects this figure to exceed 2 million this year with its ongoing efforts. The Administration analyzed approximately 1.5 million houses to identify taxpayers who need to declare rental income in the year 2024, conducting actual inspections in 425 thousand homes. Through this process, 376 thousand new taxpayers were encouraged to file tax returns. Through the Rental Declaration Form obtained from the Digital Tax Office, 38 thousand tenants voluntarily filled out forms. It was observed that there were 20 thousand taxpayers who did not submit rental declarations, and legal action was taken. As a result, there was a 26% increase in the number of taxpayers submitting declarations for the year 2024 compared to the previous year.

EXAMINATION FOR THOSE NOT DECLARING RENTAL INCOME AT THE REAL VALUE

These taxpayers submitted declarations this year, reporting 399.2 billion liras in taxable amount, a 107% increase from the previous year, and calculating 126.9 billion liras in tax, a 101% increase. Through this effort, around 55 thousand taxpayers were encouraged to submit their past rental tax returns. With these declarations, 3.1 billion liras of rental income was reported. The Administration will continue similar efforts this year. In this context, an examination process will be initiated for those who do not declare rental income based on the actual value. With the steps taken, 3.7 million income tax returns were received in 2023 and 4.4 million in 2024. The Administration aims to exceed the 4.4 million declaration figure this year as well.

REMINDER TO TAXPAYERS THROUGH SMS

The Administration sent SMS messages to 1.5 million individuals, informing them of the requirement to submit tax returns due to taxable incomes. SMS messages were sent to those earning above the exemption limit from rental income, those earning wages exceeding 3 million liras from a single employer, those earning taxable capital gains income from real estate transactions within 5 years, and those earning capital income from dividends. The Administration also reminded 2.9 million taxpayers who are currently income tax payers of the declaration period through SMS.