The Liability for Valuable House Tax will be effective as of 2021a
Essential amendments were made in relation to Valuable House Tax (“VHT”) which was enacted through the Law No. 7194 published in the Official Gazette dated 7 December 2020. Through the Law No. 7221, the effective date of VHT was postponed to 2021. If the President does not take another postponement decision, the VHT obligation will be effective at the beginning of the year 2021.
Essential issues about the VHT liability in accordance with the recent amendments may be summarized as follows:
- Residential properties within the borders of Turkey that have a building tax value of more than TRY 5 million are subject to VHT.
- The rates which will be applied for the calculation of VHT are regulated as follows:
- For valuable houses having a value between TRY 5.000.000 and TRY 7.500.000: 3 per thousand for the part exceeding TRY 5.000.000
- For valuable houses having a value between TRY 7.500.000 and TRY 10.000.000: TRY 7.500 in relation to the value of TRY 7.500.000; 6 per thousand for the value exceeding TRY 7.500.000
- For valuable houses having a value higher than TRY 10.000.000: TRY 22.500 in relation to the value of TRY 10.000.000; 10 per thousand for the value exceeding TRY 10.000.000
- Taxpayers owning only one residential property within the borders of Turkey will not be required to pay VHT regardless the value of this property is.
- Those who have more than one house within the scope of VHT, will not be required to pay VHT for the house with the lowest value.
- The first VHT return will be submitted in February 2021 to the authorized tax office where the residential property is located.
- The tax levied and accrued by the tax office will be paid in two equal instalments until the end of February and August of the relevant year.
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