About Us

Tax Exemption

TAX EXEMPTION

Our foundation has been granted "Tax Exemption Status" per Law No. 4962 Article 20 on the Amendment of Certain Laws and Granting Tax Exemption to Foundations with the Presidential Decree numbered 2024/8101 and dated 17.01.2024. Some of the rights granted to our Foundation by the General Communiqué on Granting Tax Exemption to Foundations (Serial No: 1) issued under Law No. 4962 are listed below.

RIGHTS GRANTED BY LAW TO TAX-EXEMPT FOUNDATIONS

1- It allows donors to record their donations as expenses

If Associations and Foundations alleviate public burden based on their fields of activity and the significance of the service provided, donations and aids, which shall not exceed 5% (10% in development priority regions) of the annual total income to be declared, and which were made against receipt to associations and foundations working for the public benefit according to subparagraph 4 of the first paragraph of Article 89 of the Income Tax Law, as well as the entire costs for food, cleaning, clothing and fuel donated to associations and foundations that engage in food banking activities to help poor people, may be deducted from the income to be declared in the income tax return in accordance with the 6th paragraph of the first paragraph of Article 89 of the same Law.

Foundations, that were granted tax exemption by the Council of Ministers, are exempted from the obligation to withhold payments listed in subparagraphs 7, 8, 9, and 14 of the first paragraph of Article 94 of the Income Tax Law. [1] [2] [3]

2- Companies can also make donations and record them as company expenses up to 5% of their annual earnings of that year.

According to subparagraph 1/c of Article 10 of the Corporate Tax Law, donations and aids, which make in total up to 5% of the corporate income for that year, and which were made in return for receipts to associations and foundations deemed beneficial to the public interest, and in determining corporate income, which is calculated as commercial income according to Article 8/1 of the Corporate Tax Law, the costs for food, cleaning, clothing and fuel donated to foundations that engage in food banking activities to help the poor may be deducted from corporate income according to Article 40/10 of the Income Tax Law.

3- VAT exemption for public service businesses

Delivery of goods and services within the scope of paragraphs 1 and 2 of Article 17 of the Value Added Tax Law, Law No. 3065, are not subject to value-added tax. In addition, the delivery of goods and services provided free of charge to institutions such as hospitals, convalescent homes, clinics, dispensaries, nursing homes for the elderly and disabled, soup kitchens, orphanages, and similar institutions operated by associations and foundations working for the public benefit are not subject to value-added tax.

Within the scope of subparagraph c of paragraph 2 of Article 17 of the Value Added Tax Law, Law No. 3065, the delivery of goods and services provided free of charge by associations and foundations beneficial to the public interest are exempt from Value Added Tax.

4-Exemption from inheritance and transfer tax

According to paragraphs (a) and (b) of Article 3 of the Inheritance and Gift Tax Law, Law No. 7338, associations and foundations for public benefit are exempt from inheritance and gift taxes.

No Inheritance and Gift Tax has to be paid for the aid and donations to foundations.

According to paragraph (k) of Article 4 of the same law, goods allocated during or after the establishment of foundations, which have been granted tax exemption by the Council of Ministers, are also exempt from taxes.[4]

 5- Exemption from deed fees for real estate donations, and from property taxes for real estate of foundations

According to paragraph (b) of Article 59 of Law No. 492, Law on Fees, Fee exemption is applied on transactions requiring registration and annotation of real estate and other real rights to be acquired by associations and foundations of public benefit, as well as on transactions requiring registration and annotation of the facilities owned by the association, and real estate and other real rights to be acquired by these facilities in future.

Paragraph 19 of Section V of Table No. 2 annexed to the Stamp Tax Law No. 488 states that the papers issued in the establishment procedures of foundations granted tax exemption by the Council of Ministers are exempt from stamp tax.[5]

According to paragraph (m) of Article 4 of Law No. 1319, Law on Real Estate Tax, buildings owned by a foundation, which was granted tax exemption by the Council of Ministers, will be exempt from the real estate tax, provided that they are allocated to the purpose stated in the official deed of the foundation.[6]

Even if a foundation is exempt from tax, it will submit the real estate tax declaration to the municipal tax office of the place where the immovable is located within the specified periods for the buildings, estates, and lands they own.

6-Associations and foundations that are of public benefit can receive aid without approval in accordance with Law No. 2860, Law on Aid Collection.

7- According to paragraph 7 of Article 167 of Law No. 4458, Law on Customs, among the goods imported by associations and foundations of public benefit for non-commercial purposes and the use in line with the purposes of their establishment; goods for educational, scientific and cultural purposes; scientific instruments and devices; instruments and devices for medical diagnosis, treatment, and research; animals and biological or chemical substances for scientific research purposes; therapeutic substances of human origin, and blood groups and tissue separation markers; substances for quality control of pharmaceutical products are exempt from customs duty.

8- In accordance with paragraph (d) of the first article of Law No. 237, Law on Vehicle, official (black) plates are given to the vehicles to be used by those in associations and foundations of public benefit deemed necessary by the Prime Ministry.[7]

9- Associations and foundations of public benefit are included in the state protocol.

10- According to Article 72 of Law No. 2886, State Procurement Law, immovable properties registered in the private property of the Treasury and not allocated to public services may be sold by valuation, taking into account the purchase and sale market value on the date of sale, to be used in accordance with the purposes of establishment, to associations and foundations working for the public benefit. Immovable properties acquired in this way cannot be used or sold for any purpose other than the purpose for which they were issued. If the immovable property is not used in accordance with the purpose of establishment within five years, the immovable property is taken back by the treasury over the sale price.

11- According to the seventh article of the Regulation on the Allocation of Foundation Charitable Immovables published in the Official Gazette dated 04.06.1998 and numbered 23362, associations and foundations are one of the institutions to which charities can be allocated.

12- According to Article 14 of Law No. 2863, Law on the Protection of Cultural and Natural Assets, the usufruct rights of immovable cultural and natural assets that need to be protected can be left to national associations beneficial to the public interest to be used for public services for certain periods, with the permission of the Ministry of Culture and Tourism.


[1]  With Article 45 of the Executive Decree No. 700 dated 2/7/2018, the phrases "by the Council of Ministers" in subparagraphs (7) and (8) have been changed to "by the President".

[2] With Article 45 of the Executive Decree no. 700 dated 2/7/2018, the phrase "by the Council of Ministers" in this subparagraph was changed to "by the President".

[3] With Article 45 of the Decree Law No. 700 dated 2/7/2018, the phrase "by the Council of Ministers" in this subparagraph has been changed to "by the President"

[4] With Article 42 of the Executive Decree no. 700 dated 2/7/2018, the phrase "by the Council of Ministers" in subparagraph (k) of Article 4 has been changed as "by the President" and the phrase "Council of Ministers" in subparagraph (l) has been changed as "the President".

[5]  With Article 50 of the Executive Decree no. 700 dated 2/7/2018, the phrase "by the Council of Ministers" in this row has been changed to "by the President".

[6] With Article 59 of the Decree Law No. 700 dated 2/7/2018, the phrase "by the Council of Ministers" in this subparagraph was changed to "by the President".

[7] By Article 180 of the Decree Law No. 703 dated 2018, the phrase "or by decrees" in subparagraph (b) of the first paragraph of Article 1 has been amended as "or by presidential decrees" and the phrase "by the Prime Ministry" in subparagraph (d) has been amended as "by the Presidency".