The Turkish Revenue Administration has issued a new ” Guide on Donations and Aids in Terms of Tax Legislation “, providing detailed guidance on the tax treatment of donations. It covers both in-kind and cash donations, the specific entities eligible, and how to apply these deductions on tax returns, with a focus on income, corporate, and VAT taxes.
This announcement was made by the Republic of Turkey’s Revenue Administration 25 February 2025.
According to the guide, qualifying donations can be deducted up to 5% of taxable income (or 10% for individual donations in priority development regions). Certain types of donations are eligible for full deductions, exempt from the 5% or 10% limit.
The guide specifies several donations that are fully deductible, including:
- Cash donations to the Turkish Red Crescent and Green Crescent Societies (in-kind donations are subject to the 5% cap).
- Contributions to President-initiated campaigns, such as those for natural disaster relief.
- Donations for the construction and operation of educational, health, and religious facilities.
Additionally, donations supporting cultural and tourism projects, such as the preservation of cultural heritage and the development of tourism-related facilities, are also fully deductible.
The guide further outlines that in-kind donations of essential goods to food banks, including food, clothing, and fuel, are eligible for full deduction. Donations made under specific laws, including the Elementary Education Law and the Higher Education Law, are also fully deductible.
