How Should the Rent Payment Be Paid in Workplace Rents? Gross, Net, Withholding and VAT Fact In workplace rents, “how much will I pay, how much will I get?” questions often arise for both tenants and property owners. However, when tax liabilities such as withholding and VAT come into the business, the issue can become even more complicated. As CEESS Global, we wanted to make you aware of this issue. If the Real Person Who Rents is: Withholding is on the Agenda If the person who rents the workplace is a person, withholding comes into play in this case. According to Turkish Tax Legislation: The tenant calculates a withholding tax at the rate of 20% on the gross rent. He is obliged to deposit this withholding to the Treasury on his behalf. The lessor receives only the net rental price. important note: The withholding must be paid by the lessee in full and on time. Otherwise, the tenant is responsible for the tax penalty and interest that will arise, not the owner. Definitions: Gross Rent: This is the total amount including withholding. Net Rent: It is the amount actually paid to the lessor (withholding cut). If the Legal Entity (Company) that Gives the Lease: VAT Comes into Play If the lessor is a company or a legal entity, the picture changes this time. In this case: VAT is added to the rental price at the rate of 20%. The tenant pays the rental price + VAT amount to the lessor. The declaration and paying obligation of VAT remains with the lessor (the owner company). Advice from CEESS Global: The basis of trust between the parties in workplace rentals is a clear contract and accurate Decription. The leasing processes carried out without ignoring tax obligations create a sustainable relationship Decking for both parties in the long term.