Food Banking is defined as follows in the “Law on the Amendment and Adoption of the Decree Law on the Production, Consumption and Control of Food” dated 27.05.2004:
An organization formed by non-profit associations and foundations that procure all kinds of donated or surplus food that is suitable for health, store it under appropriate conditions and deliver these products directly or through various aid organizations to the poor and those affected by natural disasters.
Food Banking with the amendments made in Articles 40 and 89 of the Income Tax Law (Income Tax Law) and Article 17 of the VAT Law No. 3065 with the “Law on Amendments to Certain Laws” published in the Official Gazette No. 25334 dated 02.01.2004. Tax regulations have been made to support its activities:
Income Tax Law Article 40: The provision titled “Expenses to be Deducted in Determination of Commercial Profit” has been added to the article titled “The cost of donated food items to associations and foundations engaged in food banking activities, within the framework of the procedures and principles determined by the Ministry of Finance, will be recorded as an expense in determining the tax base.”
Income Tax Law Article 89: This article, which lists the deductions that taxpayers can make from the income to be declared in their annual declaration, states that “to associations and foundations that engage in food banking activities to help the poor, within the framework of the procedures and principles determined by the Ministry of Finance, the entire cost of donated food items is deducted from the income declared in the annual declaration.” ” provision has been added.
VAT Article 17: Regarding food banking, the article titled “Exceptions for Social and Military Purposes and Other Exceptions” provides that “delivery of food items donated to associations and foundations that engage in food banking activities to help the poor, within the framework of the procedures and principles determined by the Ministry of Finance, is exempt from VAT.” has been added.
Income Tax Communiqué No. 251 (RG No: 25409, 21.03.2004): With this communiqué, the procedures and principles regarding donations to be made within the scope of food banking are regulated, with reference to Law No. 5035. According to the communiqué, the donation must be made to an association or foundation that has a provision in its charter or charter that it will provide food aid to those in need. The communiqué also states issues such as the goods subject to donation, the nature of the donation, the documents that the donors and recipients must prepare, the registration order and their representation in the declarations.
With the “Law on the Harmonization of Tax Laws with the New Turkish Lira and Amendments to Certain Laws” published in the Official Gazette dated 31.12.2004, numbered 25607, the scope of food banking was expanded and donations of clothing, cleaning and fuel were also expensed at cost. It is stipulated that it can be recorded.
