A notification has been implemented imposing fines on those who make rent payments in cash. According to this, all rent payments will be made through banks or PTT. Both the tenant and landlord will face fines for cash rent payments. The amount of the fine cannot be less than 5,000 Turkish Liras, with a maximum cap of 20 million Turkish Liras. The General Communique on Income Tax prepared by the Revenue Administration Directorate of the Ministry of Treasury and Finance was published in the Official Gazette and came into effect. As per the notification, collection and payments related to rental transactions for businesses and residential properties conducted by income and corporate taxpayers or individuals without any tax liability record will be made through banks or PTT. This will apply to all rent payments, including short-term residential rentals like weekly, daily, or similar arrangements. Previously, the practice required rent payments for residential properties exceeding 500 Turkish Liras to be made through banks or PTT, regardless of the business property rent amount. Through the notification, this limit no longer exists for residential rentals, and all payments must be made through banks or PTT. Furthermore, in the abolished notification, fines were imposed on both the tenant and the landlord for business property leases, whereas tenants were not penalized for residential leases. With the Law Amending the Tax Laws in the Turkish Grand National Assembly, the possibility of imposing fines on tenants was introduced alongside increased fine amounts. Tenants who do not make rent payments through banks or PTT and opt for cash payments will face a special irregularity fine of 10% of the rent amount for each violation. The fine amount cannot be less than 5,000 Turkish Liras. Previously, this was implemented as 5% of the rent amount and a minimum of 3,000 Turkish Liras. Tenants reporting cash payments within 5 business days following the transaction will not be fined for irregularities. The annual cap for fines imposed for violations has been increased from 8.7 million Turkish Liras to 20 million Turkish Liras. In addition, the “Notification on Amending the General Communique on Hidden Profit Distribution through Transfer Pricing” was published in the Official Gazette effective from September 1, 2024.