Who Should File an Income Tax Return?

Filing an annual income tax return is one of the most critical steps for individuals earning income in Turkey to fulfill their tax obligations. Conducting the process with expert professionals is important to ensure these obligations are met completely. In this week's blog post, we examined income tax return obligations.

What is an Income Tax Return?

An income tax return is an official document submitted by income tax payers to declare the income they earn within a calendar year. This return is prepared according to the provisions specified in the GVK (Income Tax Law). The income tax return allows taxpayers to report their taxable income, deductions and exemptions, expenses, and other tax-related information completely and accurately.

Income tax returns are prepared by individuals. The content of the income tax return varies according to the type, amount, and other criteria specified in the legislation of the income elements obtained by taxpayers during the taxation period. The information declared is essential for both the calculation of income tax and the fulfillment of related tax obligations.

Who is Obliged to File an Income Tax Return?

According to the Income Tax Law, those having the following 7 different types of income are obliged to pay income tax:

• Commercial profit,

• Agricultural profit,

• Wage income,

• Professional service income,

• Rental income (Real estate capital income),

• Securities income such as interest and dividends,

• Other income and earnings such as capital gains and incidental earnings.

In Turkey, individuals are required to submit an annual income tax return based on the income they earn. However, not all income automatically necessitates a tax return. The obligation depends on factors such as the type, nature, amount, and source of income. Situations where income tax return filing is mandatory are as follows:

Rental Income (Real Estate Capital Income)

Individuals who earn rental income from their residential or business properties must file an income tax return if they exceed the following limits:

• Annual income from residential rent exceeding 47,000 TL in 2025,

• Even if the rent for business premises is taxed with withholding tax, if the gross rental income exceeds 230,000 TL.

If individuals earn rental income from more than one real estate property, these limits are calculated based on the total rental income.

Professional Service Income

Individuals practicing a profession are required to submit an annual income tax return. Lawyers, engineers, financial consultants, doctors, dentists, software developers, artists, and those providing consultancy services fall within this scope. Professionals are obliged to keep an accounting book considering their gross income, expenses, and depreciations obtained during a specific taxation period. The annual income tax return is filed based on net income.

Commercial Profit Earners

Those earning commercial profits according to the balance sheet or operating principles, as well as small tradesmen and artisans taxed on a simple basis such as barbers, grocers, and greengrocers, are required to submit an annual income tax return.

Income Earned Abroad

Individuals residing in Turkey and considered full taxpayers must declare the income they obtain both domestically and abroad. If there is a tax treaty to prevent double taxation with the country where the income is earned, taxes paid abroad can be offset in Turkey.

Incidental (One-time) Earnings

In the case of a one-time sale of goods or real estate, the sale of inherited items, or when competition and award income exceed the determined exemption limit, a tax return must be submitted. For the year 2025, this limit is 280,000 TL.

Individuals Receiving Salary from More Than One Employer

The obligation to submit a tax return arises if the total salary received exceeds the salary received from the first employer, or if the amount received from the second employer exceeds 330,000 TL. Likewise, a return must be submitted if the total salary received exceeds 4,300,000 TL. Salaries received from a single employer and taxed with withholding do not necessitate filing a return.

How to Submit an Income Tax Return?

The income tax return can be submitted via the “ready declaration system” available on the GIB’s (Revenue Administration) website. The steps you need to follow to submit an income tax return are as follows:

• Log in to www.gib.gov.tr,

• Go to the “Ready Declaration System” section,

• Log in with your e-Government password,

• Select the type of income and verify the information in the system,

• Approve the declaration and obtain your accrual receipt.

You can also submit your income tax return through your financial advisor. 

Üstad, which enables you to manage your accounting and tax processes from a single platform, allows you to match with the most appropriate financial advisor in areas requiring sectoral expertise. Your financial advisor will contact you within two hours at the latest and manage the process on your behalf. You can quickly submit your income tax return by working with Üstad’s experienced team of financial advisors.