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Tax Exemption

Our Foundation was granted “Tax Exemption Status” upon the letter of “Convenience for Tax Exemption Status” by Ministry of Finance dated 08.05.2009 and no 48107 and pursuant to the Article 20 of the Law dated 30.07.2003 and no 4962 as well as resolution of the Cabinet dated 26.09.2011 and no 2011/2292. 

1- The donations and aids granted to the foundations and societies working for the public weal against receipt are deducted from the incomes stated in income tax statement on condition that they do not exceed 5% of the income whose yearly total sum will be declared (10% in the regions prioritized for development) as per subclause 4 of the first clause of Article 89 of Income Tax Law.

The part of the total of donations and aids granted to foundations and societies working for the public weal against receipt that corresponds up to 5% of the income of the same institution for that year can be subject to deduction from institution’s income as per subclause 1/b of article 14 of Corporate Tax Law.

The exception given in subclauses 7, 8, 9 and 14 of the first clause of article 94 of Income Tax Law no 193.

2- Goods delivery and service executions in the scope of subclauses 1 and 2 of article 17 of Added Value Tax no 3065 are not subject to added value tax. Besides, goods delivery and service executions performed for free for the organizations such as hospitals, convalescent hospitals, clinics, dispensaries and nurseries, free foodbanks for the poor, orphanages and similar institutions operated by the foundations and societies working for the public weal are not subject to added value tax.

The deliveries and services performed for free by the foundations and societies working for the public weal were exempted from Added Value Tax as per subclause c of clause 2 of article 17 of Added Value Tax no 3065.

3- Foundations and societies working for the public weal are exempt from inheritance and succession tax as per subclause (a) of article 3 of Inheritance and Succession Tax Law no 7338. Voluntary transfers to foundations and societies working for the public weal are not subject to inheritance and succession tax.

4 – Fee exemption will apply to registrations and proceedings requiring annotation for the real estates and other real rights to be acquired by the foundations and societies working for the public weal and registrations and proceedings requiring annotation for the facilities of the foundation and real estates and other real rights to be acquired by such facilities and cancellation of the same as per subclause (b) of article 59 of Act of Fees no 492.

5- Foundations and societies working for the public weal have real estate tax exemption for the buildings and lands owned by them (except for them being owned by the commercial enterprises of the foundations and societies or them being assigned to such commercial enterprises) as per subclause (e) of article 4 and subclause (c) of article 14 of Real Estate Tax Law no 1319.

6- Foundations and societies working for the public weal can obtain aids without receiving a permit as per Aid Collection Law no 2860.

7- Lands and parcels can be sold to foundations working for the public weal by national estate or foundations pursuant to Cabinet Decree as per the first article of Law Concerning Lands and Parcels that can be sold to some Institutions and Municipalities by National Estate and Abandoned or Registered Foundations no 748.

8- The goods imported by the foundations and societies working for public weal which are not imported for commercial purposes and which will be used for founding purposes; goods for scientific, educational and cultural purposes, scientific devices and tools, devices and tools for medical diagnosis, treatment and research, animals for scientific researches, blood group and tissue type assortment indicators, goods for quality control of medicinal products are exempt from customs tax as per clause 7 of article 167 of Customs Law n 4458.

9- The vehicles of the foundations and societies which are found required by the Prime Ministry can be granted official (black) plate as per subclause (d) of the first article of Vehicle Law no 237.

10- The foundations and societies receiving public benefit are in scope of state protocol.

11- The real estates registered in the private ownership of Treasury and not allocated to public services can be sold to the foundations and societies working for public weal for the purpose of using through appraisal method based on their market value on the date of sales in accordance with their founding purposes as article 72 of Public Procurement Law no 2886. The real estates obtained this way cannot be used for other purposes and cannot be sold. Unless they are used for founding purposes within five years, real estate will be acquired by Treasury based on the sales price.

12- One of the institutions to which charity real estates can be allocated is the foundations and societies as per article 7 of the Regulations on Allocation of Charity Real Estates published in Official Gazette dated 04.06.1998 and no 23362.

13- Usufruct rights of immovable cultural and natural properties requiring protection as per Article 14 of Code of Protection of Cultural and Natural Properties no 2863 can be ceded to national foundations working for public weal as per the permission of Ministry of Culture and Tourism for use in public services for a certain period.

14- Those insulting and violating such foundations and societies will be punished as indicated in Article 480 or 482 of Turkish Penal Code no 765 as per article 483 of the same law. 

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