Foundation Act

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


ARTICLE -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.

ARTICLE -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.

(Additional Paragraph: 20/11/2017-Statutory Decree-696/64 Article; Accepted:01/02/2018-7079/59 Article) The properties and rights allocated to the foundation at the beginning and also the properties and rights acquired subsequently by the foundation can be replaced with more beneficial ones or be converted into money by the decision of the Foundation Competent Body.

ARTICLE 2/A- (Additional Article: 20/11/2017-Statutory Decree-696/65 Article; Accepted:01/02/2018-7079/60 Article)

(Amendment:24/10/2018-7149/1 Article) The Board of Trustees of the Foundation consists of the Vice President of the Republic of Turkey appointed by the President of the Republic of Turkey, the Minister of National Defence, Commader of Turkish Armed Forces and President of Defence Industries at the presidency of the President of the Republic of Turkey.

The meeting time, quorum, duties and authorities of the Board of Trustees are set by the Articles of Foundation.

The Board of Directors of the Foundation consists of minimum three,  maximum seven members elected by the Board of Trustees.(1)

The duties, authorities and responsibilities of the Board of Directors are set by the Articles of Foundation.

ARTICLE -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.

ARTICLE -4:

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

ARTICLE -5:

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

ARTICLE -6:

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

PROVISIONAL ARTICLE 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 ARTICLE 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.

PROVISIONAL ARTICLE 3- (Additional Article: 20/11/2017-Statutory Decree-696/66 Article; Accepted:01/02/2018-7079-61 Article)

The amendments, to be made on the Articles of Foundation pursuant to the legal arrangement made with regard to the Board of Trustees and Board of Directors through the article 2/A, shall be registered in line with the provisions of the Turkish Civil Code no. 4721 dated 22/11/2001. However, the provisions of the article 2/A are implemented without waiting for the completion of the registration.

PROVISIONAL ARTICLE 4- (Additional Article: 24/10/2018-7149/2 Article)

The amendments, to be made on the Articles of Foundation pursuant to the legal arrangement made with regard to the Board of Trustees and Board of Directors through the article 2/A, shall be registered in line with the provisions of the Turkish Civil Code no. 4721 However, the provisions of the article 2/A are implemented without waiting for the completion of the registration.

 

LIST SHOWING THE DATE OF ENTRY INTO FORCE OF THE LEGISLATION MAKING ADDITIONS AND AMENDMENTS ON THE LAW NO. 3388 OR THE CONSTITUTIONAL COURT ANNULMENT DECISIONS 

Number of Law/Statutory Decree or Constitutional Court Decision annulling

The Amended or Annulled Articles of the Law no. 3388 

Date of Entry Into Force


Statutory Decree/696


2, 2/A, Provisional Article 3

24/12/2017


7079


2, 2/A, Provisional Article 3

08/03/2018

 

                         7149

 

        2/A, Provisional Article 4               02/11/2018