Public Benefit Status
TAX EXEMPTION FOR PUBLIC BENEFIT
Verenel Solidarity and Mutual Assistance Association, established in 2008, has continued its services with the mission of "Serving God and Humanity, the Most Beautiful of Creation." In accordance with Article 27 of Law No. 5253 on Associations, we applied for our association to be recognized as a Public Benefit Organization under file number 14490. In response, the Directorate General for Civil Society Relations of the Ministry of Interior, by letter, informed us that by the decision of the Presidency dated April 10, 2023, and numbered 2023/7055, Verenel Solidarity and Mutual Assistance Association has been granted the status of a Public Benefit Organization.
TAX DEDUCTIONS AND PRIVILEGES GRANTED TO ASSOCIATIONS AND FOUNDATIONS UNDER THE LAW
1- According to Article 89, Paragraph 1, Clause 4 of the Income Tax Law, donations and contributions made to public benefit associations and foundations, up to 5% of the annual total declared income (or up to 10% in priority development regions), are deductible from taxable income upon presentation of a receipt. Additionally, under Article 89, Paragraph 1, Clause 6 of the same law, the full cost of food, cleaning supplies, clothing, and heating materials donated to associations and foundations engaged in food banking activities for the purpose of aiding the poor is deductible from the income reported on the income tax return.
Furthermore, according to Clauses 7, 8, 9, and 14 of Article 94, Paragraph 1 of the Income Tax Law, foundations that have been granted tax exemption by a decision of the Council of Ministers are exempt from the obligation to withhold taxes on the specified payments.
2- According to Article 10, Subparagraph 1/c of the Corporate Tax Law, the total amount of donations and contributions made to associations and foundations deemed beneficial to public interests, up to 5% of the corporate income for that year, can be deducted from taxable corporate income upon presentation of a receipt. Additionally, under Article 8/1 of the Corporate Tax Law, when determining corporate income calculated as business profit, the cost of food, cleaning supplies, clothing, and heating materials donated to foundations engaged in food banking activities for the purpose of aiding the poor (as per Article 40/10 of the Income Tax Law) can be deducted from corporate income.
3- The delivery of goods and provision of services covered under Paragraphs 1 and 2 of Article 17 of the Value Added Tax (VAT) Law No. 3065 are exempt from VAT. Additionally, the delivery of goods and provision of services provided free of charge by public benefit associations and foundations to institutions such as hospitals, convalescent homes, clinics, dispensaries, elderly and disabled care homes, free soup kitchens for the poor, orphanages, and similar establishments are also exempt from VAT.
Under Clause (c) of Paragraph 2 of Article 17 of the VAT Law No. 3065, public benefit associations and foundations are exempt from VAT for the delivery of goods and services they provide free of charge.
4- According to Clauses (a) and (b) of Article 3 of the Inheritance and Transfer Tax Law No. 7338, public benefit associations and foundations are exempt from inheritance and transfer tax.
No inheritance or transfer tax will be levied on donations and contributions made to foundations.
Moreover, according to Clause (k) of Article 4 of the same law, properties allocated for the establishment of foundations or assigned after their establishment are also exempt from tax if the foundations have been granted tax exemption by a decision of the Council of Ministers.
5- According to Clause (b) of Article 59 of the Fees Law No. 492, public benefit associations and foundations are exempt from fees for the registration and annotation of real estate and other property rights they acquire. This exemption also applies to the registration and annotation of facilities belonging to the association, as well as any real estate and property rights these facilities acquire later, and their cancellations.
6- In Article 19 of Section V of the Supplementary Table 2 of the Stamp Duty Law No. 488, it is stated that documents prepared during the establishment process of foundations granted tax exemption by a decision of the Council of Ministers are exempt from stamp duty.
7- According to Clause (m) of Article 4 of the Property Tax Law No. 1319, buildings belonging to foundations granted tax exemption by a decision of the Council of Ministers are exempt from property tax, provided they are allocated for the purpose specified in the official foundation deed.
Even if foundations are exempt from taxation, they must still submit a property tax declaration to the municipal tax office where the immovable property is located within the specified timeframes for the buildings, land, and plots they own.
8- Public benefit associations and foundations have the opportunity to collect donations without obtaining permission, in accordance with the Law No. 2860 on Fundraising.
9- According to Article 1 of Law No. 748 on National Assets and Lands Abandoned or Seized from Certain Institutions, Foundations, and Municipalities, suitable lands and plots from national properties or foundations may be sold to public benefit associations by a decision of the Council of Ministers.
10- According to Paragraph 7 of Article 167 of the Customs Law No. 4458, goods imported by public benefit associations and foundations for non-commercial purposes and to be used in accordance with their organizational goals are exempt from customs duties. These include items intended for educational, scientific, and cultural purposes; scientific instruments and equipment; devices used for medical diagnosis, treatment, and research; animals intended for scientific research; biological or chemical substances; human-derived therapeutic substances; blood group and tissue typing markers; and materials intended for quality control of drug-like products.
11- According to Clause (d) of Article 1 of the Vehicle Law No. 237, official (black) license plates are issued for vehicles to be used by public benefit associations and foundations, as deemed necessary by the Prime Ministry.
12- Public benefit associations and foundations are included in the state protocol.
13- According to Article 72 of the Public Procurement Law No. 2886, immovable properties registered as special property of the Treasury and not allocated for public services may be sold by valuation to public benefit associations and foundations for use in accordance with their organizational purposes, taking into account the market value at the time of sale. Immovable properties acquired in this manner cannot be used or sold for purposes other than the intended purpose. If the immovable property is not used in accordance with the organizational purpose within five years, it will be reclaimed by the Treasury at the original sales price.
14- According to Article 7 of the Regulation on the Allocation of Foundation Properties, published in the Official Gazette dated June 4, 1998, and numbered 23362, one of the institutions to which foundation properties can be allocated is associations and foundations .
15- According to Article 14 of the Law No. 2863 on the Protection of Cultural and Natural Assets, the usufruct rights of immovable cultural and natural assets that require preservation may be granted to national public benefit associations for use in public services for specific periods, with the permission of the Ministry of Culture and Tourism.
16- According to Article 483 of the Turkish Penal Code No. 765, those who commit trespass or insult against these associations and foundations shall be punished with the penalties specified in Articles 480 or 482, depending on the nature of their actions.
DONATIONS MADE TO OUR ASSOCIATION, BOTH IN KIND AND CASH, ARE WITHIN THE SCOPE OF TAX EXEMPTION.