Aid to those affected by the earthquake will be subject to tax deduction

Donations and aid made under the coordination of the Emergency and Disaster Attention Presidency (AFAD) and the Red Crescent may be subject to tax deductions.

The Tax Administration ruled on the situation of donations and aid made by the earthquake against tax legislation. In the statement, the tax reduction provisions already in the legislation were recalled.

In the statement, it was recalled that, in accordance with the applicable legislation, all donations in kind or in cash made to official aid campaigns against receipt can be considered as a discount in the determination of the taxable bases of the corresponding year.

TAX REDUCTION WILL BE MADE

Pursuant to Presidential Decree No. 3483 published on February 3, 2021, relief campaigns have been carried out under the coordination of the Emergency and Disaster Management Presidency (AFAD) for victims of disasters that may occur in Turkey. Since that date, the following were observed:

“In this context, an aid campaign was launched under the coordination of the AFAD Presidency for the earthquakes in Kahramanmaraş. In addition, in accordance with the provisions of the Income and Corporation Tax Law, all cash donations made to the Turkish Red Crescent Society can be deducted from the taxable amount.

All cash donations and aid made to the accounts announced by the AFAD Presidency for those affected by the earthquakes will be deducted by income taxpayers and companies. In addition, all cash donations made to accounts advertised by the Turkish Red Crescent will be subject to a discount. The bank receipts of the payment will be sufficient for the deduction of the donations.

In order to eliminate conditions that negatively affect life in general after earthquakes, corporate and income taxpayers can donate in-kind supplies that are available at their businesses or obtained from abroad.

in-kind donations; It can be done to the AFAD Presidency itself, as well as to public institutions and organizations directed by AFAD. All in-kind donations made in this area may be subject to a discount, provided that a document is issued on the content of the goods subject to donation and receipt by the corresponding institutions.

Once again, VAT will not be calculated for donations and aid made in this area, and the VAT borne by the goods that are the object of the donation will be discounted by the companies. (AA)