Taxpayers urged not to miss filing date for lawsuits on valuation for the valuable house tax

Turkey

After the introduction of the Valuable House Tax dated 7 December 2019 passage of the Omnibus Bill, property owners are subject to a tax on "immovables" within Turkey valued at TRY 5,000,000 (approximately EUR 762,000) or more by the General Directorate of Land Registry and Cadastre (“TKGM”).

Immovables valuation and objections

TKGM will determine the value of the immovable and the determined values will be announced on the TKGM website with written notice sent to those concerned. Within fifteen (15) days from the date of notification, objections against a valuation must be made to TKGM or the Directorate of Land Registries. Beginning on the sixteenth day, the valuation will be considered final.

If those concerned did not object within fifteen (15) days, however, they could apply for a judicial remedy since the valuation becomes definitive only for administrative action. Additionally, a party reserves the right to apply to tax court within thirty (30) days beginning from the effective date.

If the objection to valuation is denied, a party can file a lawsuit with the Administrative Court for a cancellation decision. If there is no response from the relevant authority within fifteen (15) days, those concerned can file a lawsuit to Administrative Court within thirty (30) days after the conclusion of the fifteen (15) day objection period with TKGM.

According to Tax Procedure Law, a taxpayer can file a lawsuit in Tax Court to object to a tax assessment. Apart from the objection to the valuation, this process allows a party that holds reservations over a tax to retain the option of filing a lawsuit to the Tax Courts within thirty (30) days. This process will serve as a taxpayer's objection to the taxation. The opponent in the action will be the tax offices.

Conclusion

The authorities are not obliged to offer a detailed and transparent explanation regarding valuation criteria and the objection process. A statement, however, can be expected from the authorities regarding these subjects. Additionally, the relevant jurisdictions of the various authorities should be made clearer. We will notify you when the authorities provide a detailed explanation of these points.

For more information on this tax regulation and its deadlines, contact your regular CMS representative or our local CMS expert DrDöne Yalçın.