The Revenue Administration made a statement regarding the situation of donations and aids made due to the earthquake against tax legislation.
In the statement, it was pointed out that donations and aids were made by income and corporate taxpayers in order to eliminate the conditions that adversely affected the general life after the earthquakes in Kahramanmaraş, and to meet the urgent needs of the disaster victims, in accordance with the provisions of Article 89 of the Income Tax Law and Article 10 of the Corporate Tax Law. It was reminded that all in-kind or cash donations made to the aid campaigns initiated by the President can be considered as a discount in the determination of the tax bases of the relevant year.
In accordance with the Presidential Decree No. 3483 published on February 3, 2021, aid campaigns have been carried out under the coordination of the Emergency and Disaster Management (AFAD) Presidency for the disaster victims that may occur in Turkey since that date.
"In this context, an aid campaign was launched under the coordination of AFAD Presidency for earthquakes in Kahramanmaraş. In addition, in accordance with the provisions of the Income and Corporate Tax Law, all cash donations made to the Turkish Red Crescent Association can be deducted from the tax base.
All of the cash donations and aids made to the accounts announced by the AFAD Presidency for the disaster victims affected by the earthquakes will be subject to deductions by the income and corporate taxpayers. Likewise, all cash donations made to the accounts announced by the Turkish Red Crescent will be subject to a discount. Bank receipts for the payment will be sufficient for the donations to be deducted.
In order 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. 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 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. Again, VAT will not be calculated for donations and aids made within the said scope, and the VAT incurred on the goods subject to donation will also be subject to discounts by businesses.