Tax immunity on rental income

Reyntj · Post by **Reyntj** » Sat 21 Jan 2017 11:29 am

I came across some old posts on cyprus44 and it was saying if you are resident here and have rental income from trnc property you can fill in a tax immunity form at the tax office and not have to pay the 10 % tax subject to you having no other income . A muhktars letter and confirmation from the employment office that you are not employed are also required .

Does anybody have any up to date information on this ?

Reyntj · Post by **Reyntj** » Sat 21 Jan 2017 1:21 pm

Any accountants out there ?http://www.erdalco.com/wp-content/uploa ... 016ENG.pdf

If you look at the attached card the bit about witholding tax is very interesting and if im correct could benefit many people not just for rental income . If you have savings here and are resident you are being taxed at 10 % on the interest . If you have no other income my understanding is that you can recalim or are exempt from the 10 % tax as you can
Offset it against your personal. allowance here which for 2016 was 17500 tl plus .

Its similar in the uk where you can fill in an r85 ( from memory ) form and pay no taxation on your savings .

I did work in finace for twenty years in uk but im not an accountant perhaps soemone like an accountant can confirm

Navek · Post by **Navek** » Sat 21 Jan 2017 1:32 pm

Well spotted Reyntj,
Hope someone can look into this further.
Maybe some business owner could have a word with their accountant.
This could be very advantageous for many expats

Reyntj · Post by **Reyntj** » Sat 21 Jan 2017 4:02 pm

Regarding the tax on savings. In the uk if you. Foreign residenot you still get youtr income tax allowance which means you can claim the witholding tax on savings . I cant see why the same cant be done here?

Here is an example of the potentil savings:

Married couple tom and barbara are residentin trnc they dont yet draw their pension and live on income from savings. They each have 200000 tl on deposit with Warranti bank at 10 % interest. The 40000 tl interest is taxed at 10 % and the bank withold 4000 tl in tax . They realise that they c an utilise their tax allowance here which in 2016 was 1750 tl per month or 21000 tl per annum and pay zero tax on their savings. Saving 4000 tl kercfhinggghggg.

Actually no idea if this is correct but if it is similar to the uk it is !

jofra · Post by **jofra** » Sat 21 Jan 2017 9:00 pm

Some savings interest is now tax-free in the UK -
From Gov.UK site (here) -
"Personal Savings Allowance
You may also get up to £1,000 of interest tax-free depending on which Income Tax band you’re in. This is your Personal Savings Allowance.
Income Tax band Tax-free savings income
Basic rate £1,000
Higher rate £500
Additional rate £0 "