Public Benefit Status

PUBLIC BENEFIT STATUS AND TAX EXEMPTION

Valide Humanitarian Aid Association, established on 16/07/2010, while continuing its work with the principle of “Service to the people is service to the Truth”, applied on 25/07/2012 under application no. 24844 pursuant to Article 27 of the Law on Associations no. 5253 for our association to be deemed among the Associations Working for the Public Benefit. In the reply of the Department of Associations of the Ministry of Interior, Valide Humanitarian Aid Association was granted the status of an Association Working for the Public Benefit by the decision of the Council of Ministers dated 16/07/2014 and numbered 2014/6647.

PRIVILEGES GRANTED BY LAW TO TAX-EXEMPT ASSOCIATIONS AND FOUNDATIONS

1- Pursuant to subparagraph 4 of the first paragraph of Article 89 of the Income Tax Law, donations and aid made against receipt to associations and foundations working for the public benefit, not exceeding 5% of the income to be declared annually (10% in priority development regions), and pursuant to subparagraph 6 of the first paragraph of Article 89 of the same Law, the entire cost value of food, cleaning materials, clothing and fuel donated to associations and foundations engaged in food banking for the benefit of the poor, are deducted from the income declared in the income tax return.

Foundations granted tax exemption by the Council of Ministers are exempted from the obligation to withhold tax on the payments listed in subparagraphs 7, 8, 9 and 14 of the first paragraph of Article 94 of the Income Tax Law.

2- Pursuant to subparagraph 1/c of Article 10 of the Corporate Tax Law, the portion of the total of donations and aid made against receipt to associations and foundations deemed beneficial to the public interest, up to 5% of the corporate income for that year, and, under Article 8/1 of the Corporate Tax Law, the cost value of food, cleaning materials, clothing and fuel donated to foundations engaged in food banking for the benefit of the poor as referred to in Article 40/10 of the Income Tax Law, may be deducted from corporate income in determining corporate income calculated as commercial income.

3- Deliveries of goods and performance of services falling within the scope of paragraphs 1 and 2 of Article 17 of the Value Added Tax Law no. 3065 are not subject to value added tax. In addition, deliveries of goods and performance of services made free of charge to institutions such as hospitals, convalescent homes, clinics and dispensaries operated by associations and foundations working for the public benefit, as well as to care homes for the elderly and disabled, free soup kitchens for the poor, orphanages and similar institutions, are not subject to value added tax.

Within the scope of subparagraph (c) of paragraph 2 of Article 17 of the Value Added Tax Law no. 3065, deliveries and services made in connection with the deliveries and services that associations and foundations beneficial to the public interest will provide free of charge are exempt from value added tax.

4- Pursuant to subparagraphs (a) and (b) of Article 3 of the Inheritance and Transfer Tax Law no. 7338, associations and foundations beneficial to the public are exempt from inheritance and transfer tax.

No inheritance and transfer tax shall be payable on aid and donations made to foundations.

Likewise, pursuant to subparagraph (k) of Article 4 of the same Law, assets allocated to foundations granted tax exemption by the Council of Ministers, whether for their establishment or after their establishment, are also exempt from tax.

5- Pursuant to subparagraph (b) of Article 59 of the Fees Law no. 492, the registrations and transactions requiring annotation in respect of immovable property and other rights in rem to be acquired by associations and foundations beneficial to the public, together with the facilities belonging to the association and the immovable property and other rights in rem to be subsequently acquired by such facilities, are exempt from fees.

6- In paragraph 19 of Section V of Schedule 2 annexed to the Stamp Tax Law no. 488, it is stated that documents issued in connection with the establishment procedures of foundations granted tax exemption by the Council of Ministers are exempt from stamp tax.

7- Pursuant to subparagraph (m) of Article 4 of the Real Estate Tax Law no. 1319, buildings belonging to foundations granted tax exemption by the Council of Ministers are exempt from real estate tax, provided that they are allocated to the purpose set out in the foundation’s official deed.

Even where foundations are exempt from tax, they must submit a real estate tax declaration to the municipal tax office of the locality where the immovable property is situated, within the prescribed periods, for the buildings, plots and land they own.

8- Associations and foundations beneficial to the public may receive aid without obtaining permission pursuant to the Law on the Collection of Aid no. 2860.

9- Pursuant to the first article of Law no. 748 on Land and Plots that May Be Sold to Certain Institutions and Municipalities from National and Abandoned Property or Registered Foundations, land and plots deemed suitable from National Property or foundations may be sold to associations beneficial to the public by decision of the Council of Ministers.

10- Pursuant to paragraph 7 of Article 167 of the Customs Law no. 4458, goods imported by associations and foundations working for the public benefit without commercial purpose and for use in line with their founding objectives — including goods intended for educational, scientific and cultural purposes, scientific instruments and devices, and equipment for medical diagnosis and treatment — are exempt from customs duty.

11- Pursuant to subparagraph (d) of the first article of the Vehicles Law no. 237, official (black) number plates are issued for vehicles to be used by those deemed necessary by the Prime Ministry on behalf of associations and foundations beneficial to the public.

12- Associations and foundations granted public benefit status take their place in the state protocol.

13- Pursuant to Article 72 of the State Procurement Law no. 2886, immovable property registered as private property of the Treasury and not allocated to public services may be sold to associations and foundations working for the public benefit, for use in accordance with their founding objectives, taking into account the market purchase and sale value at the date of sale.

14- Pursuant to Article 7 of the Regulation on the Allocation of Charitable Foundation Immovables, published in the Official Gazette dated 04.06.1998 and numbered 23362, associations and foundations are among the institutions to which charitable foundation immovables may be allocated.

15- Pursuant to Article 14 of the Law on the Protection of Cultural and Natural Heritage no. 2863, the usufruct rights of immovable cultural and natural assets requiring protection may be granted, for specified periods and for use in public services, to national associations beneficial to the public interest with the permission of the Ministry of Culture and Tourism.

16- Pursuant to Article 483 of the Turkish Penal Code no. 765, those who commit assault or insult against such associations and foundations shall be punished with the penalties set out in Articles 480 or 482, according to the nature of their acts.

IN-KIND AND CASH DONATIONS MADE TO OUR ASSOCIATION FALL WITHIN THE SCOPE OF TAX EXEMPTION.