Family and Youth Fund is being established

According to the law, the Family and Youth Fund, which has a public legal personality affiliated with the Ministry of Treasury and Finance, has been established.

The Law on the Establishment of the Family and Youth Fund has been published in the Official Gazette and has entered into force.

MINISTERS WILL APPOINT

The board of directors of the fund will consist of five members, chaired by the Deputy Minister of Treasury and Finance, and including the Deputy Minister of Family and Social Services, the Deputy Minister of Youth and Sports, the Deputy Minister of Energy and Natural Resources, and the Deputy Minister of Industry and Technology. Board decisions will be taken by majority vote. The deputy ministers will be appointed by their respective ministers.

The Family and Youth Fund will be managed by the board of directors. The board of directors will be authorized to determine the projects to which resources will be transferred from the fund, the amount of resources to be transferred, and expenditure programs.

The secretariat services of the Family and Youth Fund will be provided by the Ministry of Treasury and Finance.

RESOURCES OF THE FUND

The resources of the fund will consist of 20 percent of the state share collected under the Turkish Petroleum Law and the state right collected under the Mining Law; amounts to be transferred by Presidential decree up to 10 percent from the revenues of funds established or to be established by laws and decrees; amounts consisting of repayments within the scope of projects for which repayment is envisaged; all kinds of cash donations, aid, and grants from domestic and foreign sources; and other revenues.

The President will be authorized to reduce the rate of the state share collected under the Turkish Petroleum Law and the state right collected under the Mining Law to zero or to increase this rate up to two times.

The expenses of the fund will consist of amounts transferred to relevant institutions and organizations for incentives, grants, support, loans, and guarantees within the scope of projects approved by the board of directors; service fees and commissions arising from these; expenses within the scope of the management of the fund's resources and projects approved by the board of directors; and other operational expenses.

RESOURCE TRANSFERS

In accordance with the purpose of the fund, resources will be transferred from the relevant fund to public institutions and organizations by the decision of the board of directors to be paid within the framework of the expenditure program for projects approved by the board of directors.

Responsibility for the economic and technical feasibility of the projects and the appropriate, effective, economical, and efficient use of the amounts transferred by the fund will belong to the relevant institutions and organizations.

The transferred amounts will be recorded as revenue to the general budget for administrations within the scope of the general budget, and to the budget of the relevant public institutions and organizations for other administrations.

The relevant administrations will be authorized to record the amounts recorded as appropriations in the schedules to be opened in the relevant administration budgets and to transfer the portions not spent within the year to the following year.

In projects where repayment is envisaged, the transferred amounts will be repaid to the relevant public institutions and organizations. The relevant administrations will be authorized to record the amounts repaid to the relevant institutions and organizations as revenue and appropriation to the general budget for administrations within the scope of the general budget, and to the budget of the relevant institutions and organizations for other administrations. The amounts recorded as revenue and appropriation will be transferred to the fund by the relevant institutions and organizations as an expense to the budget no later than the 10th business day of the following month.

In the event that the projects approved by the board of directors are time-bound and the amounts paid within the scope of the expenditure program are not spent by the relevant institutions and organizations, the unspent amounts will be transferred to the fund by the relevant institutions and organizations as an expense to the budget no later than the 10th business day following the completion of the relevant project.

In order for the resources transferred to the relevant institutions and organizations to be transferred to the beneficiaries and for any potential repayments to be collected, the aforementioned institutions and organizations may enter into protocols with payment service providers operating under the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions, finance companies operating under the Law on Financial Leasing, Factoring, Financing and Savings Financing Companies, and credit guarantee institutions.

FINANCIAL DATA WILL BE SHARED

In case data and information are requested by the fund, the relevant institutions and organizations and the organizations with which protocols are signed will be obliged to provide all kinds of data and information requested regarding the projects submitted to the board of directors within the forms and periods to be determined by the fund.

Financial data regarding the fund will be shared with the public at least every 6 months.

The fund will be exempt from corporate tax. It will not be considered that an economic enterprise has been formed due to the revenues obtained from its activities related to the duties of the fund. This exemption will also cover tax deductions to be made in accordance with the Income Tax Law and the Corporate Tax Law on the earnings and income of the fund.

In addition, the fund will be exempt from stamp duty and fees. Donations and aid made to the fund will be exempt from inheritance and gift tax, and interest amounts and profit shares collected by banks and finance companies due to amounts transferred from the fund's resources to beneficiaries will be exempt from banking and insurance transactions tax and deductions to be made to the resource utilization support fund.

All cash donations and aid made to the fund may be deducted from the declared income or corporate earnings, provided that they are shown separately on the income or corporate tax return, within the framework of the provisions of the Corporate Tax Law.

The working procedures and principles of the fund, as well as the resources and expenses of the fund and the procedures and principles regarding resource transfers to be made from the fund, will be determined by a regulation to be issued by the President.

News Source: 12punto