On 21 March 2023, Turkey published Law No. 7441 in Official Gazette to create a disaster reconstruction fund for natural disasters affected areas.
The fund is exempt from corporate income tax on all income received and its activities related to its listed functions are not considered an economic enterprise. Transactions and documents resulting from the Fund’s activities are exempt from stamp duty and fees, while donations and grants are exempt from inheritance and gift tax.
Contributions to the Fund are also tax-exempt and cash donations and grants are deductible for income or corporate income tax if reported separately on tax returns. Taxes on banking and insurance activities do not apply to the Fund’s functions.
