TAFF



Foundation Act

Foundation Law

Date of assent: 17th June 1987
The Law Act No : 1987-3388
Official Gazette : 25th June 1987

CLAUSE-1:

The purpose of this Law is to constitute the Turkish Armed Forces Foundation in order to work towards increasing the fighting strength of the Turkish Armed Forces by developing the national armaments industry of Turkey, establishing new branches of the armaments industry, and purchasing weapons, vehicles and equipment.

CLAUSE-2:

The Turkish Armed Forces Foundation is to be established by this Law. The founders of the foundation are; the Minister of National Defence, the Deputy Chief of General Staff of the Turkish Armed Forces, the Undersecretary of the Ministry of National Defence (MoND Defence Industry) and the Chairman of the Defence Industry Development and Support Administration. The Constitution of the foundation is registered by the Minister of National Defence in accordance with the relevant articles in the Turkish Civil Code.

No other foundation may be established for an identical purpose.

CLAUSE-3:

The Turkish Armed Forces Foundation as established by this Law is exempt from;

a. Corporate Tax (except for Financial Enterprises),

b. inheritance tax and death duty for donations and grants,

c. stamp duty on any kind of transaction.

Donations and grants given to the foundation are exempt from all kinds of taxes and other legal dues. Donations and grants may be set off against income tax and corporate tax.
The Foundation also benefits from exemptions of taxes and other legal dues and exceptions which are also exempt for the Turkish Army Foundation, Turkish Air Force Foundation, Turkish Naval Foundation and all other foundations that enjoy these exemptions according to the laws by the Council of Ministers.

CLAUSE-4:

In situations in which this Law does not have an article, the relevant articles in the Turkish Civil code shall be valid.

CLAUSE-5:

This Law shall be valid as of the date of enactment.

CLAUSE-6:

The articles of this Law are to be applied by the council of ministers.

PROVISIONAL CLAUSE 1:

Real estate and stocks and shares, cash, assets and liabilities of the Turkish Army Foundation, the Turkish Naval Foundation and the Turkish Air Forces Foundation, without the necessity for any executive decision, will devolve to the Turkish Armed Forces Foundation within a maximum of three months after this Law comes into effect. Handover, delivery and cancellation transactions are to be performed by the executive boards of these foundations within the stipulated time.

If the transactions are not completed within the time stipulated above, after the expiration of the time, handover, delivery and cancellation transactions will be accepted as performed. When the handover transactions have been completed and the time in the first section expires, in all situations the legal entities of these three foundations shall be over.

Handover, delivery and cancellation transactions are to be performed under the supervision of the Foundations General Directorate.

Handover transactions and the required paperwork for this transaction and all profits from this transaction are exempt from all kinds of tax and other legal dues.

PROVISIONAL CLAUSE 2:

Salaried employees of the foundations which are to lose their legal status in accordance with the regulations made with this law shall have no legal relationship with the Turkish Armed Forces Foundation if they are not part of the staffing needs of the new foundation body and its activities. The employees are to receive their statutory rights and compensation.