Akademik Veri Yönetim Sistemi
Maliye Çalışmaları Dergisi, sa.70, ss.35-45, 2023 (Hakemli Dergi)
EXTENDED ABSTRACT
Associations and foundations have become indicators of democracy and constitute the institutional side of civil
society these days. Although the existence of associations founded on voluntary principles in the modern sense can
be traced back two centuries, foundations date back to much earlier periods. The common goal of associations, which
are formed by individuals with the motivation to act together toward similar purposes, and foundations, which have an
independent property allocated to achieve specific goals, can be stated as a defined community benefit. The purposes
of these organizations sometimes coincide with the fields of activity of public institutions, sometimes help achieve
the purpose of the service more effectively, and sometimes engage in services of a diverse nature outside the range of
public institutional services.
Neither type of organization aims for profit; however, they generally need to reach a certain level of income to achieve
their goals. The main incomes of associations can be listed as periodical dues and participation fees from members,
money earned from organized events, and various donations. Foundations, however, should have wealth proportional to
the initial purpose or purposes, and these assets that are earmarked for the specific objective should regularly generate
income for the foundation. Although a minimum amount can be said to be determined each year by the Foundations
Council in the Turkish Legal System for establishing a foundation, when considering that this amount for 2023 is
120,000 Turkish Lira, one realizes this amount is inadequate for the continuous fulfilment of a purpose under today’s
economic conditions.
While many associations and foundations are currently found aimed at developing activities related to almost every
aspect of life, their greatest obstacle can be said to be a lack of income for achieving their goal. For this reason,
associations and foundations establish enterprises that operate under market conditions and contribute to the revenues
of the relevant non-governmental organization, or they become partner with some company. In this regard, tax laws
have started to gain importance. As such, this study attempts to explain the Articles of Turkish Tax Law concerning
foundations, associations, and their enterprises in the light of practice and examples and to discuss the situation of
these legal entities in the face of tax laws. The study also addresses within its scope the rights and obligations tax laws
provide for publicly beneficial associations and tax-exempt foundations. The study also examines the Articles related
to foundations, associations, and enterprises based on the relevant tax laws. The reason for this is to provide a better
understanding of whether the relevant laws bring forth regulations by considering the nature, reason for existence, and
activities of foundations, associations, and enterprises.
In conclusion, the examination of the Articles in various tax laws reveal limitations to the exemptions and exceptions
that directly cover all foundations and associations. A large portion of tax exemptions and exceptions cover associations
that serve public interests and foundations which have been granted tax exemption by the President. The conditions
required for a foundation to be granted tax exemption by the President or similarly for obtaining the status of a
public benefit association have become ever increasingly difficult to meet. The income levels that such entities need
to generate are raised each year, while the expenses mandated for foundations and associations are also observed to
increase. Therefore, the tax exemptions and exceptions that concern all foundations and associations need to be increased
within the Turkish Tax System, and the scope of tax benefits that are provided to the foundations and associations
that manage to meet the specific difficult conditions for obtaining tax exemption or for becoming a public-interest
association needs to be expanded.