The explanations below are provided by the Paper Nr. 268 on Income Tax published on the Official Gazette on 29.07.2008. These explanations are about certification of residence or workplace rent payments and receipts through banks and post offices.

As of 01.11.2008, the duty to certify rent payments by means of documents to be drawn up by Banks or General Directorate of Post and Telegram Administration is brought

• To those that have a rent income over YTL 500 for every resident in residential rents,
• To landlords and lessees in workplace rents.

This way, landlords who let their houses or workplaces will have to give their bank account numbers to lessees and payments on hand will be prevented.

Following exceptions are set forth by the Paper to the duty of certification:

• Residential rent incomes below YTL 500 monthly
• Collections of residential or work place rents made through enforcements of court decrees are exempt from the duty brought by the Paper.

  The exemption provision provides that in residential lease contracts in which rent is below YTL 500, there is no duty to certify rent payments by bank transfers or mail orders and rent may also be paid on hand.

It is also set forth that real payments are exempt from the duty of certification.

In the Paper in which the minimum limit for residential rents is set forth as YTL 500, it is observed that no minimum limit is provided for rent of workplaces. For this reason, in case of a rent of a workplace, rent shall be paid through bank transfer or mail order without regarding the amount of the rent.

In payments made through banks or General Directorate of Post and Telegram Administration, as in payments by money transfers; checks or payments by credit cards related receipts or monthly statements will be produced, documents to be drafted by these institutions will be considered as certifying documents. Payments and receipts made through internet branches of banks are in the same value as normal payments.

The Paper has also criminal provisions:

According to the article 355 of the Tax Procedure Law, a special procedural penalty will apply to landlords who do not comply with the duty brought by the repeating article 257, that is who accept payment on hand where payment by bank transfer or mail order was obligatory.

We may observe that the discussed Paper is addressed mainly to real persons. It is no clear whether the duty brought by the Paper nr. 268 will also apply in case of rents by or between legal entities. However, according to the General Paper no. 332 on Tax Procedure Law, taxpayers shall make payments for transactions of goods and services among them or between them and consumers which exceed YTL 8.000 through banks, private finance institutions or General Directorate of Post and Telegram Administration.