5 Questions About The New Turkish Valuable House Tax Communique
Turkey’s New Law Amends Taxation System: Change Is the Only Constant
A Three-Month Extension for VAT Reduction & Withholding Tax on Real Estate Rentals Has Been Granted
On 29 December 2020, the Ministry of Treasury and Finance Revenue Administration published the General Communique on Tax Procedure Law in the Official Gazette. The communique details the figures for real estate and motor vehicle taxes that will be applied in 2021.
Real estate tax, which is paid in two installments per year, in May and November, has increased by 4.55 percent. People who declare that they have no income, those who only receive payments from social security institutions, veterans, disabled people, martyred widows and orphans are exempt from paying real estate tax on homes that do not exceed 200 square meters.
Motor vehicle tax will increase by 9.11 percent ranging from TRY 109 a to TRY 50,107
Annual motor vehicle taxes vary according to engine size, value and age as below:
According to the announcement, vehicles with an engine capacity of 1.3 litres or below will pay between TRY 109 and TRY 1,261.
Vehicles with an engine capacity between 1.3 and 1.6 litres will be subject to motor vehicle tax between TRY 216 and TRY 2,197.
Vehicles with an engine capacity between 1.6 and 1.8 litres will pay between TRY 387 and TRY 3,881.
Vehicles with an engine capacity between 1.8 and 2.0 litres will pay between TRY 595 and TRY 6,113.
Vehicles with an engine capacity between 2.0 and 2.5 litres will pay between TRY 901 and TRY 9,170.
Vehicles with an engine capacity between 2.5 and 3.0 litres will pay between TRY 1,256 and TRY 12,786.
Vehicles with an engine capacity between 3.0 and 3.5 litres will pay between TRY 1,769 and TRY 19,472.
Vehicles with an engine capacity between 3.5 and 4.0 litres will pay between TRY 2,536 and TRY 30,616.
And last vehicles with an engine capacity more than 4.0 litres will pay between TRY 3,556 and TRY 50,107.