Foundations wishing to benefit from tax exemption must first meet the conditions set forth in Article 20 of Law No. 4962.
Foundations that aim to operate in the fields of health, social assistance, education, scientific research and development, culture and environmental protection and afforestation are within this scope. It may be related to one or more of the activities of the foundation that will benefit from the exemption. In addition to being active in law-making activities, it seeks that these activities are open to the public and at a level that will reduce the burden of the State’s public service, and that this activity has been going on for at least one year.
The foundation that will benefit from tax exemption should not be allocated for its purposes and the costs that should be spent should not be used for any other purpose. Even if foundations that are determined to make a difference in purpose or to spend the costs they should spend for other purposes, these exemptions will be terminated even if they benefit from the exemption.
Even if the field of activity is one of the above-mentioned issues, foundations that aim to serve a certain region or a certain population and whose foundation assets do not exceed a certain amount and also do not have an income of at least 10% of the foundation’s assets will not be exempted from taxation.
Another requirement for exemption is bookkeeping on a balance sheet basis. Foundations that do not keep books on the basis of balance sheet are not entitled to benefit from the exemption.
For foundations that apply to the Ministry of Finance, considering that they meet the conditions stated above, the opinion of the General Directorate of Foundations and other institutions related to the subjects aimed in the foundation deed is sought. This view affects the foundation’s ability to benefit from the exemption.
you can read our other articles and petition examples by clicking here.