Tax Impact Of Sponsorships In Health Care
What Is Sponsorship ?
Sponsorship is an agreement made by companies or real person traders in kind and material terms with the person or institution they want to sponsor.Within the scope of the sponsorship activity that will take place in kind sponsorship, institutions sponsor the person or institution they sponsor by offering their products or services.In financial sponsorship, instead of providing products or services, it is necessary to allocate a budget.In other words, it is realized by giving some money in line with the value of the sponsorship.Sponsorship can be done in various fields such as health,culture,sports and science.
Health Sponsorship :
Sponsorships in the field of Health in hospitals, clinics supported, about health and diseases Public Information efforts in the field of health institutions and organizations, associations and foundations to the support of studies. Sponsors can also support the health sector through financial assistance and equipment assistance such as ambulance or device procurement.
Through sponsorships in this area, both the community is informed about health and the sponsoring organization has the opportunity to introduce itself to a large extent through the means of communication. At the same time, the sponsor institution has the opportunity to reveal that it is not only trying to make money in its products or services and that it is also considering the health of the community, and it will be working towards winning the goodwill of the society.
For example, the ‘National Vaccination Days’ organized for the complete eradication of polio virus that causes polio in Turkey started on 26 April 1999 and lasted one week. Dozens of institutions have sponsored the campaign. About 3 thousand people connected to the Istanbul Provincial Directorate of Health and 1310 teams of approximately 820 thousand children in the 0-5 age group in the campaign was targeted to be vaccinated against polio virus.
Tax Impact Of Sponsorships In Health Care :
Expenditures made to improve and maintain health and care services may be considered as a discount factor in determining corporate earnings.All of the benefits listed below will be considered as a discount element in determination of corporate tax base.
Expenditures on the construction of facilities such as nursing homes, care and rehabilitation centers and health facilities not less than one hundred beds capacity,
All donations and expenditures made to the above-mentioned public institutions for the construction of these facilities,
Cash and in-kind donations and grants made to enable existing health facilities such as nursing homes, care and rehabilitation centers to continue their activities,
The benefits and expenditures to be made to the facilities operating in the field of health are included in this category.
From the above phrase” health facility”, it is necessary to understand the institutions and organizations evaluated by the Ministry of Health within the scope of health facility.
Counted at the dam for the construction of facilities located outside the mentioned organizations, associations beneficial to the public by the Council of ministers with tax-exempt foundations and donations to the year of income of 5% may be deducted to be limited in this context.
Health care facilities, and Home Care Nursing and Rehabilitation Center these facilities with the construction of these facilities or activities in order to continue aid without any restriction of expenditure and tax-deductible expenses,these expenses and assistance the overall budget administrations,special budget administrations special provincial administrations and in case you will be able to be done.
In the determination of the tax base of donations and expenditures to institutions or organizations other than public administrations and organizations, the subject of reductions or within which limits can be made within the framework of general provisions will be evaluated.
In case the donations and assistance in kind are donated by withdrawing from the asset or stock of the enterprise, corporate tax payers are required to issue invoices for the values they have withdrawn from the enterprise and donated.On the back side of this invoice, it is sufficient that the values specified in the invoice are signed by the authorized persons of the organization in which the expenditure and assistance is made, which are received as assistance by the relevant public institution.
In order to take into account the expenses and benefits made in kind or in cash as a discount element by the corporate tax payers, they must have been made in return for receipts.
In the event that in-kind benefits are received by the corporate tax payers from outside and donated to the public institution and organization, it is sufficient to have a document issued for the values to be received by that institution and organization. In this document, the value, type and amount of the benefits should be clearly stated without any hesitation. In addition, on the back of the bills issued in relation to the donated values must be signed by the officials of the public institutions and organizations with which the expenditures and assistance are made.
In order to deduct cash donations from the tax base, the expenditure and assistance must be documented with a receipt to be given by the institutions and organizations or with bank statements regarding the deposit of money into accounts opened in banks for this purpose.These documents prove that the assistance and expenditures were made by the sponsor to the relevant institution and organization.
Expenditures and benefits made under sponsorship agreements in the field of health care are considered to be deductible in the tax base for the year in which they are made.Deductible portions cannot be transferred to the following year.