February 14, 2023
Statement by the Revenue Administration of Türkiye on the deduction of donations from the tax base due to the earthquake
Our income and corporate tax payers in Türkiye provide donations and aid in order to address the immediate needs of our citizens affected by the disaster as well as to remove the situations that negatively impact general life after the earthquakes, whose epicenter is Kahramanmaraş, Türkiye.
As known, all in-kind or cash donations made against receipt to aid campaigns started by the President can be taken into account as a deduction in the determination of the tax bases of the relevant year in accordance with the provisions of Article 89 of the Income Tax Law and Article 10 of the Corporate Tax Law.
Under the direction of the Disaster and Emergency Management (AFAD) Presidency, aid campaigns are carried out. According to the Presidential Decree No. 3483 published on 3/2/2021, an aid campaign was started in this context under the coordination of the AFAD Presidency for earthquakes centered in Kahramanmaraş for the disaster victims who have been harmed after the earthquakes that may occur in our country as of this date.
Moreover, in accordance with the provisions of the Income and Corporate Tax Law, all cash donations made to the Turkish Red Crescent (Türk Kızılay) can be deducted from the tax base.
Cash Donations and Aids
All of the cash donations and aids made to the accounts announced by the AFAD Presidency for the disaster victims affected by the earthquakes can be deducted by the income and corporate taxpayers. Likewise, all cash donations made to the accounts announced by the Turkish Red Crescent (Türk Kızılay) will be subject to a discount. Bank receipts for the payment will be sufficient for the donations to be deducted.
In-kind Donations and Aids
To be able to eliminate the conditions that adversely affect the general life after earthquakes, income and corporate taxpayers can also donate in-kind materials that are available in their businesses or obtained from outside. In-kind donations can be made to the AFAD Presidency itself as well as to public institutions and organizations directed by AFAD. All in-kind donations made within this scope can be subject to discount, provided that a document is issued regarding the content of the goods subject to donation and receipt by the relevant institutions. VAT will not be calculated for donations and aids made within the said scope, and the VAT incurred on the goods subject to donation may also be subject to discount by enterprises.
We would like to express our gratitude to our income and corporate taxpayers, as well as all of our citizens, for their contributions and donations while maintaining the necessary sensitivity in this regard.
You can send your questions and suggestions about the subject to kurumlarvergisi@gelirler.gov.tr
Source: Revenue Administration of Republic of Türkiye- Translated by Karen Audit – KarenAudit owns the rights to this translation, and any unlawful use is forbidden.
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