Accounting and tax applications regarding equity based crowdfunding: An example of Türkiye

After the 2008 global financial crisis, innovative ideas were needed to meet the financing needs as the confidence in banking system was lost and it became difficult to obtain financing with traditional methods. The crowdfunding financing model has been introduced as a funding tool that can better respond to individual needs, as the opposite of the standardized service approach of banks. Crowdfunding allows founders who have artistic and cultural initiatives established for profit purposes to fund small initiatives with limited contributions from large numbers of people who use the internet without standard financial intermediaries. Crowdfunding tools have four different types in terms of the way of fundraising. In the donation-based funding method, there is no purpose of profit. The funders only act to support the project. In the award-based financing model, a product or gift is expected as an output of the support provided to the project. Debt-based crowdfunding is a method by which investors earn interest yield. Last but not least, share-based crowdfunding is a financing model in which the required amount of funds is obtained by selling stocks to investors. Given the increasing use of the crowdfunding model, it is essential to have a clear understanding of the regulations regarding this model. The aim of this thesis is to examine the accounting practices in the share-based crowdfunding model and to offer suggestions on issues such as tax incentives for the dissemination of this model in our country.