TURKISH REPUBLIC OF NORTHERN CYPRUS COUNCIL OF MINISTERS ISSUED A BY- LAW REGARDING RETURN OF A PART OF THE RENT PAID TO THE TENANT AND SETTING A NEW RATE OF INCOME TAX ON THE FOREIGN CURRENCY BASED RENTALS

The By- Law issued by the Council of Ministers regarding Return of a part of the rent paid to the tenant and setting new rate of Income Tax on the foreign currency based rentals was published in the Official Gazette  on 16th June 2023.

The rent agreements stated in this By- Law include the ones whch were properly stamped and stamp duty paid.

The By- Law states the following :

1.All types of immovable property (including those rented together with furniture) are subject to  witholding tax on the gross amount of the rent :

The rate of the witholding tax :

On the rent set up in Turkish Lira          -  8%

On the rent set up in foreign currency – 13%

The tax is payable by the landlord or his/her legal representatives.

2. As from the date of the publication of this a 3 % (Three Percent)  of the rent paid for the months of July, August, September, October and December of the year 2023 is repayable to the tenants. The tenant can only be the real person and the repayment can only be on those rents wich were properly stamped.

3. Those who are entitled to repayment must make a written application to the Inland Revenue (The Tax Office) together with the properly stamped rent contract.

4. In the event where there are more than one tenant unless there is any clause contarary to this the payment of the rent is divided equally amongst the tenants. Each tenant entitled to receive the repayment applies individually.

5. If it was later found out that the tenants had not complied with written clauses or did not pay the rent in accordance with the articles of the rent agreement, the amount paid to these persons are considered as Public debt and litigation is carried in accordance with the  Collection of Public Debt and its Procedures Law.