- The Turkish Revenue Administration issued Publication No. 532 on December 11
- The publication addresses deductions for expenses and depreciation for passenger cars used in business or self-employment
- For 2024, up to 26,000 Turkish lira of monthly rental fees for passenger cars are deductible
- Any amount over 26,000 Turkish lira is included in commercial profits
- VAT on rental amounts over 26,000 Turkish lira is not deductible for income or corporate tax
- VAT-exempt entities like banks and insurance companies can deduct the full 26,000 Turkish lira for net income calculations
- VAT taxpayers can deduct the 26,000 Turkish lira rental fee and up to 5,200 Turkish lira for VAT
- Businesses not mainly involved in car rental or operation can deduct only up to 70 percent of related expenses for tax purposes
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
