The Ministry of Economy and Finance implemented a Prakas on Immovable Property Rental Tax on March 20, 2024, in accordance with Article 146 of the Law on Taxation.

This law is applicable to leases of immovable property between parties who are not registered in the self-assessment regime. The tax imposed on landlords is levied at a rate of 10% on their rental income. Tenants who are registered taxpayers are required to fulfill their withholding tax duties as outlined in Articles 25 and 26 of the Law on Taxation.

The fundamental structure and exceptions of this tax have remained mostly unaltered compared to the preceding Prakas. It is important to mention that properties rented by certain individuals or entities are exempted.

• The government;
• Diplomatic establishments such as embassies and consulates, international organizations, and technical cooperation agencies from foreign nations;
• Non-Governmental Organizations (NGOs) or associations.