The Turkey Third Sector Foundation (TÜSEV) recently published the 'Monitoring Matrix for a Enabling Environment for Civil Society Türkiye Report. The report provides detailed field studies and analyses on various aspects related to civil society organizations, ranging from violations of organizational and freedom of expression rights to audits and financial structures.According to the report, when analyzing the status of civil society organizations (associations and foundations) in Turkey, only 28.9% of them are in 'relatively good financial condition', while 51.8% are considered 'weak', and 19.3% are categorized as 'very weak'.Based on this data, the sustainability of 71.1% of civil society organizations in Turkey is under threat. Moreover, the report highlights that a significant portion of the civil society organizations considered to be in 'relatively good financial condition' are those that receive grants and financial support from foreign sources. This group includes organizations regulated by Law No. 7262 and subject to frequent audits, as well as civil society organizations that face challenges related to freedom of association and freedom of expression.Hence, the issue of taxation for civil society organizations, which strive to ensure their financial sustainability through individual and corporate donations, grants, and their own economic enterprises, deserves serious attention and discussion.The pressures on civil society organizations go beyond interference with freedom of association and freedom of expression, or financial and administrative controls. In Turkey, civil society organizations, despite being expected to be encouraged by the state for their financial sustainability in a democratic society, unfortunately, have to adhere to the same taxation regulations as for-profit companies. In addition to the injustice of granting tax amnesty to pro-government corporations almost every year and to citizens every few years, the relentless taxation of civil society organizations that work for the common good without profit is highly unfair.Apart from corporate tax and tax exemptions for grants and donations, civil society organizations pay VAT and withholding tax in almost exactly the same way as private companies. The only way for these organizations to benefit from any tax exemption or incentive is to obtain one of the "Public Benefit Association" or "Tax Exempt Foundation" statuses granted by the President. Very few associations (361) and foundations (323) are known to have these statuses, and an analysis of their distribution reveals that those working in the fields of health and education naturally constitute the majority. It is also widely believed that the political preferences of the government play a significant role in determining which organizations are granted these statuses. Interestingly, all associations and foundations that have been implicated in cases of nepotism, corruption, and abuse within government circles and the bureaucracy in recent years have at least one of these statuses. Similarly, many associations and foundations associated with businesspeople have been granted such status, ostensibly to promote commerce and entrepreneurship. However, predictably, no associations or foundations working in areas such as human rights, the rule of law, and democracy have been granted such status, and it is unlikely that they will be granted anytime soon.The civil society organizations we aim to discuss in this bulletin utilize grants and donations they receive from abroad to implement projects in their respective countries or regions, with a focus on socially beneficial purposes, such as human rights, democracy, environmental protection, and solidarity with refugees. All activities outlined in these projects are carefully planned through detailed cost-benefit analyses, aiming to achieve measurable and demonstrable results.Furthermore, strict guidelines are in place to ensure that the budgets submitted to grant agencies are not misused for personal gain or for unrealistic purposes.&nbsp;In countries with democratic regimes, accountability and transparency are top priorities when it comes to grants, especially from institutions such as the European Union, as these funds are essentially the money of taxpayers living in those countries. However, in Turkey, the grants received by civil society organizations, which are based on meticulously prepared budgets and activities prioritizing social benefit, are treated as the income of for-profit companies and subjected to the same taxation.These taxes include taxes paid on the salaries of civil society organization employees, social security institution tax, stamp tax, VAT, and excise tax on purchases, as well as withholding taxes on rent and royalty payments. The magnitude and variety of these taxes illustrate that grants provided by other countries and international organizations for social good are perceived as a source of state revenue in Turkey.In light of all the evident pressures and obstacles faced by civil society organizations, it is imperative to reform the existing taxation policies, which are used as an indirect means of exerting pressure on organizations with significant capacity and influence. While it may be more likely that the current government will not pursue such reforms, we still wish to highlight the positive reform recommendations outlined in this Report:"All tax legislation concerning CSOs should be reviewed from a holistic perspective, and incentive arrangements should be implemented to support the financial sustainability of CSOs. Economic enterprises established by foundations and associations in line with their objectives should be granted exemption from corporate tax. Transfers made by profitable economic enterprises to the association or foundation from the profit remaining after corporate tax is paid should not be considered profit distribution and should not be subject to income tax withholding.CSOs' economic enterprises should not be evaluated based on whether they are profit-oriented or not, but rather on whether their activities align with their objectives. The economic activities of CSOs should not be considered as commercial activities. Additionally, income-generating activities such as bazaars, dinners, balls, trips, concerts, etc., organized by foundations and associations more than once a year should not be classified as economic activities requiring the establishment of an economic enterprise, provided they meet specific conditions."Taxes on CSOs' passive investments should be abolished. CSOs should be exempted from withholding tax or value-added tax on rent they are obliged to pay for the addresses they rent as headquarters; stamp tax, VAT, real estate tax, environmental cleaning tax, motor vehicle tax, and special consumption tax on the contracts they are a party to, as well as notary fees for establishment and subsequent transactions."

We monitor the ongoings of Turkiye in the fields of the rule of law, economics, civil society, and politics.

The Freedom Observer

The pressures on civil society organizations go beyond interference with freedom of association and freedom of expression, or financial and administrative controls. In Turkey, civil society organizations, despite being expected to be encouraged by the state for their financial sustainability in a democratic society, unfortunately, have to adhere to the same taxation regulations as for-profit companies. 

The Taxation Issue of Civil Society Organizations

Özgürlük Araştırmaları Derneği'nin hazırladığı Özgürlük Gündemi, Türkiye’nin hukuk devleti, ekonomi, siyaset ve sivil toplum gündemine ilişkin vakıaların değerlendirildiği, iki haftada bir pazartesi günü yayımlanıyor.

Özgürlük Araştırmaları Derneği'nin iki haftada bir Türkiye gündemine ilişkin vakıaları değerlendirdiği bültendir.

Özgürlük Gündemi

Sivil toplum kuruluşlarının üzerindeki baskı, sadece örgütlenme ve ifade özgürlüğüne müdahale veya malî-idarî denetimlerle sınırlı değildir. Türkiye'deki sivil toplum kuruluşları, demokratik bir toplumda finansal olarak sürdürülebilirliklerinin devlet tarafından teşvik edilmesi beklenen kuruluşlar olmalarına rağmen, maalesef kâr amacı güden şirketlerle aynı vergilendirme kurallarına tâbidirler.

Sivil Toplum Kuruluşlarını Vergilendirme Sorunsalı

We are fast approaching to the 2023 Turkish general elections. Before the elections, the People's Alliance stands out with its polarizing, hostile and discriminatory rhetoric. The Nation Alliance, on the other hand, draws attention with its rhetoric based on reconstructing social peace, reconciliation and love with the heart signs made with hands during the campaign. However, in recent weeks, the homophobic rhetoric of the Yeniden Refah Partisi and the threats to the existence of LGBTI+ organizations seem to have been accepted by the society to a certain extent, and similar statements were also reflected in the discourses of the Nation Alliance candidates.In the event that the People's Alliance wins the elections, many worrying scenarios are foreseen for non-governmental organizations and individuals working in the field of LGBTI+ rights. The reason is clear. Some members of the People's Alliance openly promise that LGBTI+ associations will be closed. In an environment where these hate speeches are spearheaded by the President, the Minister of Interior and the Minister of Justice, the polarizing discourses of "either us or LGBT people" cause anxiety among LGBTI+ rights defenders.[1]Although the Nation Alliance stands out with its more peaceful and inclusive rhetoric that gives confidence to LGBTIs, unfortunately, there have been some statements to the contrary from this very segment recently. These statements, which can be interpreted as making fun of LGBTI identities and associating them with immorality, are disappointing because they are made by those who we think are more democratic and peaceful in politics.[2] Although this situation did not lead LGBTI individuals to give up supporting the Nation Alliance candidate in the Presidential elections, it greatly reduced their expectations from a possible Nation Alliance government.[3] Nevertheless, although homophobic statements are false and distrustful, in the light of their statements so far, it can be expected that LGBTI+ individuals will be freer and more comfortable in a possible Nation Alliance government compared to their current situation.The ongoing discourse of the People's Alliance reflects a superiority or inferiority between lifestyles where the winner will make the life of the other difficult. On the other hand, it would be appropriate to see the homophobic statements of the Nation Alliance, which emphasizes social peace, reconciliation, and unity in almost every issue, as a mistake made as a result of carelessness rather than a sign of public policy preference.<a fr-original-style="" href="#_ftn3" name="_ftnref3" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank" title=""> </a><hr align="left" size="1" width="33%" fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;"> <a href="#_ftn3" name="_ftnref3" title="" target="_blank" fr-original-style="" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;"></a>[1] https://bianet.org/bianet/lgbti/278415-secim-yarisinda-nefret-yayiliyor-lgbti-dernekleri-uyardi-suc-isliyorsunuz[2] https://kaosgl.org/haber/millet-ittifaki-bilesenleri-acilen-ayrimci-soylemden-geri-donmeli-lgbti-haklarini-konusmali[3] https://kaosgl.org/haber/lgbti-lara-nefret-soylemi-toplum-sagligini-olumsuz-etkiliyor

The ongoing discourse of the People's Alliance reflects a superiority or inferiority between lifestyles where the winner will make the life of the other difficult. On the other hand, it would be appropriate to see the homophobic statements of the Nation Alliance, which emphasizes social peace, reconciliation, and unity in almost every issue, as a mistake made as a result of carelessness rather than a sign of public policy preference.

The Difficult Test of LGBTI+s: 2023 Elections

2023 Türkiye genel seçimleri için son günlerdeyiz. Seçimler öncesi, Cumhur İttifakı kutuplaştırıcı, düşmanlaştırıcı ve belirli gruplara ayrımcılık üzerine kurulu söylemleriyle öne çıkmaktadır. Millet İttifakı ise önce 6’lı Masa’nın uzlaşmayla oluşturulması sürecinde ardında da kampanya esnasında ellerle yapılan kalp işaretleriyle toplumsal barışın, uzlaşının ve sevginin yeniden inşa edilmesi üzerine kurulu söylemleriyle dikkat çekmektedir. Ancak son haftalarda, özellikle Yeniden Refah Partisi'nin homofobik söylemleri ve LGBT+ kuruluşların varlıklarına yönelik tehditleri, toplumda bir oranda kabul görmüş olmalı ki benzer ifadeler Millet İttifakı adaylarının söylemlerine de yansıdı.Cumhur İttifakı'nın seçimleri kazanması durumunda, LGBT+ hakları alanında çalışan sivil toplum kuruluşları ve bireyler açısından endişe verici birçok senaryo öngörülmekte. Çünkü Cumhur İttifakı üyelerinden bazıları, açık bir şekilde LGBT+ derneklerinin kapatılacağını vaat etmektedir. Cumhurbaşkanı, İçişleri Bakanı ve Adalet Bakanı'nın da bu nefret söylemlerinin başını çektiği bir ortamda, "ya biz ya da LGBT'ciler" gibi kutuplaştırıcı söylemler LGBT+ hakları savunucularında tedirginlik yaratmaktadır.[1]Millet İttifakı ise, her ne kadar LGBT+’lara da güven veren daha barışçıl ve kapsayıcı söylemleriyle öne çıkmaktaysa da, son günlerde bu kesimden de maalesef yer yer aksi yönde açıklamalar gelmektedir. LGBT+ kimliklerini alay konusu yapmak ve ahlâksızlıkla ilişkilendirmek şeklinde yorumlanabilecek olan bu açıklamalar, siyasetin daha demokratik ve barışçıl olduğunu düşündüğümüz isimleri tarafından yapıldığı için hayal kırıklığına neden olmaktadır.[2] Bu durum LGBT+ kimlikli bireyleri Cumhurbaşkanlığı seçimlerinde Millet İttifakı'nın adayını desteklemekten vaz geçmeye götürmese de, muhtemel bir Millet İttifakı hükümetinden olan beklentilerini epey azaltmıştır.[3] Yine de, homofobik açıklamaları yanlış ve güven kırıcı olmakla beraber, bugüne kadarki açıklamaları ışığında, muhtemel bir Millet İttifakı iktidarında LGBT+ bireylerin bugünkü durumlarına kıyasla daha özgür ve rahat olacakları beklenebilir.Cumhur İttifakı'nın devam eden söylemleri, 2023 seçimlerinin hayat tarzları arasında bir rekabet ve kazananın diğerinin yaşamını zorlaştıracağı bir dönüm noktası olarak algılanmaktadır. Buna karşılık, hemen hemen her konuda toplumsal barış, uzlaşma ve birlik vurgusu yapan Millet İttifakı’nın homofobik açıklamalarını bir kamu politikası tercihi işareti olmaktan çok, dikkatsizlik ve özensizlik eseri yapılan bir hata olarak görmek uygun olacaktır. <hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;"> 1 https://bianet.org/bianet/lgbti/278415-secim-yarisinda-nefret-yayiliyor-lgbti-dernekleri-uyardi-suc-isliyorsunuz2 https://kaosgl.org/haber/millet-ittifaki-bilesenleri-acilen-ayrimci-soylemden-geri-donmeli-lgbti-haklarini-konusmali3 https://kaosgl.org/haber/lgbti-lara-nefret-soylemi-toplum-sagligini-olumsuz-etkiliyor

Cumhur İttifakı'nın devam eden söylemleri, 2023 seçimlerinin hayat tarzları arasında bir rekabet ve kazananın diğerinin yaşamını zorlaştıracağı bir dönüm noktası olarak algılanmaktadır. Buna karşılık, hemen hemen her konuda toplumsal barış, uzlaşma ve birlik vurgusu yapan Millet İttifakı’nın homofobik açıklamalarını bir kamu politikası tercihi işareti olmaktan çok, dikkatsizlik ve özensizlik eseri yapılan bir hata olarak görmek uygun olacaktır.

İsrafil Özkan