Rent withholding tax calculator
With the rental withholding tax calculator, you can easily calculate the withholding tax amount to be deducted from your workplace rent payments. Quickly find out the withholding tax based on the gross rent amount.
For business premises rent, the tenant withholds the tax and declares it to the tax office. The rate is 20%.
Important
This tool is for information only and produces approximate results based on generally accepted calculation logic. It does not replace professional assessment of a specific case; the final calculation should be made by an authorised professional.
What is Rental Withholding Tax?
Withholding tax on rent is a type of income tax applied to commercial property rentals, which is deducted from the rent amount and paid to the tax office. Businesses leasing commercial premises make a withholding tax deduction based on the specified rate when paying rent, and declare this amount to the tax office. Thanks to the withholding tax calculator, you can quickly and easily calculate the withholding tax amount to be paid based on the rent amount.
How to Calculate Rent Withholding Tax?
Rental withholding tax is calculated by applying the designated withholding tax rate on the workplace rent. In Turkey, the withholding tax rate applied to workplace rentals is generally 20%.
The rental withholding tax calculation logic is as follows:
Withholding Tax = Gross Rental Amount × Withholding Tax Rate
For example, if a 20% withholding tax is applied to a workplace with a gross rental amount of 10,000 TRY, the withholding tax to be deducted would be 2,000 TRY. The rental withholding tax calculator automatically performs this operation to show the withholding tax amount to be paid.
Who Pays the Withholding Tax on Rent?
Rental withholding tax is deducted by the business making the rental payment and paid to the tax office. In other words, the commercial tenant deducts the withholding tax amount from the rent payment and pays the remaining balance to the property owner.
The withholding tax amount is then declared by the tenant through a withholding tax return and paid to the tax office. Therefore, it is crucial to calculate the rental withholding tax accurately for commercial property rentals.