Subject: Revenue Administration Announcement Regarding Donations and Aids Made Due to the Earthquake
The Revenue Administration published an announcement dated February 9, 2023 regarding the deduction of donations and aids to be made due to the earthquake disaster from income/corporate tax bases.
The explanations made in the announcement are summarized below.
Cash Donations and Aids
All cash donations and aids made to the bank accounts announced by AFAD Presidency for the disaster victims affected by the earthquake can be deducted by income and corporate taxpayers. Likewise, all cash donations made to the accounts announced by the Turkish Red Crescent will also be deductible. In order to document the payment and to be able to deduct the relevant amount from the tax base, the bank receipts regarding the payment will be sufficient.
In-kind Donations and Aids
Income and corporate taxpayers can also donate the necessary in kind materials from their businesses or outsourced in order to overcome the adverse effects on the general life conditions. In-kind donations can be made to the AFAD Presidency itself or to public institutions and organizations directed by AFAD. All in-kind donations made within this scope can be subject to deduction, provided that a receipt is issued by the relevant institutions regarding the content of the donation. Again, VAT will not be calculated for the donations and aids made in this scope and VAT incurred in order to procure those goods can be deducted by the enterprises.
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