Donations and Aid to Disaster Victims Regarding the Earthquake Disaster

Conditions for deducting donations and contributions as expenses:

* Must be made to designated institutions and organizations

* Limited to the (financial) profit of the company (cannot be deducted as an expense in the event of a loss)

* Donation and aid amounts that cannot be recorded as expenses in the relevant year cannot be carried forward to the next year

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Deductibility status of donations made in the form of relief supplies (in-kind) and monetary (cash) contributions:

- Donations made to AFAD … 100% of the donation made, provided it does not exceed the profit --> https://www.afad.gov.tr/depremkampanyasi2

- Donations made to the Turkish Red Crescent (Kızılay) and Yeşilay … 100% of the donation made, provided it does not exceed the profit

- Foundations and associations working for the public benefit … the amount of donation made, provided it does not exceed 5% of the profit

Foundations --> https://www.gib.gov.tr/yardim-ve-kaynaklar/yararli-bilgiler/vergi-muafiyeti-taninan-vakiflarin-listesi

Associations --> https://www.siviltoplum.gov.tr/kamu-yararina-calisan-dernekler

Unfortunately, the Ahbap Association is not included among these associations :(

Ahbap Association donation page --> https://ahbap.org/bagisci-ol

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In-kind deliveries can be recorded as expenses, provided that documentation is issued regarding the contents of the goods subject to the donation and their receipt by the relevant institutions

If the company is making donations from its own resources, a VAT-free invoice must be issued for these products, and the invoice must explicitly state: "VAT has not been calculated since it is donated on the condition of being distributed to those in need"

If the products subject to the donation are procured from external sources, the VAT incurred may be subject to deduction, provided that documentation regarding their receipt by the relevant institutions is issued

In the case of monetary donations, the bank receipt must explicitly specify which donation campaign the transfer belongs to

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