Donations and charities in the Turkish tax system

Donations and charities in the Turkish Tax Systemİsmail IŞIKDokuz Eylul UniversityInstitute Of Social SciencesFinance Department of ManagementFinancial Law ProgramDonations and charities are the expenses fullfilled with the aim of socialpurposes without waiting any financial return. Powers at work, however, in order toprovide the encouragements of the donations and charities oriented certain areas, havemade important regulations, and have supplied that donations and charities fullfilledunder certain conditions could be considered as an element of reduction to fix taxassesment or of expense to Schedule of Institutional Tax.Donations and charities are socially qualified expenses based on humanisticsensationsIn our study, it is tried to examine that the place and the basic characteristics ofthe donations and charities in the Individual, Institutional, Value Add Taxes and inspecific laws, and the items that should be taken into consideration by taxpayers.In our taxing system based on the scheduled principial, one of the importantreasons that make various people and ınstitutions easy to donate and charity is to be ableto reduct it from individual and institutional taxes under certain circumstances.Actually, the expense caused by donation and charity is not related to getincome. It should be appreciated as an expense from taxed income in a framework ofspending of that income. Yet, considering the social contributions of the donatedsocieties, foundations and instituions to the country, it is considered that the state shouldbe joined indirectly to this donations by means of reduction from tax assesment. Indeed,the donations up to the compulsive amount in act are extracted from the income subjectedto taxing, and the part which excess this amount has already been paid from the taxedincome.The general explanations concerning the donations and charities take the place inthe first part of the study; then, in the second and third part, following revealing someregulations mentioned in Individual and Institutional Tax Laws, it will generally betreated the applications of donations and charities. In the fourth part the regulationmentioned in spesific laws, and in the fifth part, establishment of donation and charitywill be dealt with on the part of Value Add Taxes.Final part of the study will appreciate the negative or positive effects, apart fromthe general effects of the application of donation and charity, on part of taxpayer and ofstate.Key World: 1) Donation and charities 2) Limited Donation and charities3) Unlimited Donation and charities