Project Based Incentives for the investments in Turkey
Turkey’s Parliament has enacted a Law on Supporting Project Based Investments. The Law has been published in the Official Gazette. The Law has authorized the Council of Ministers to grant incentives for project-based investments.
A decision from Council of Ministers regarding project based investments has been published in the Official Gazette. The decision has clarified the principles and procedures regarding project-based incentives.
According to The Decision incentives that might be granted by The Council of Ministers are as follows.
- Exemption from customs duty
- Exemption with zero rate from VAT
- Tax Exemption or Tax Deduction
- Support for employer’s share of social security premium
- Support for Income tax withholding on wages
- Support for qualified personnel
- Support for interest payment on loan or granting for project financing
- Capital participation
- Support for Energy cost
- Guarantee for public procurement
- Site allocation for Investment
- Support for Infrastructure
- Exemption or relieves on certain procedures.
The minimum fixed investment amount eligible to benefit the incentives and grants listed above is USD 100 million.
The Ministry of Economy may invite one or more companies to make an investment in the area that has been identified by the Ministry or may make an announcement of the investment areas. Based on these invitations or announcements, the investors may apply to the Ministry of Economy to benefit from one or more of the incentives. They need to provide information and documentation regarding their corporate details and project details such as the feasibility of the project.
Initially, the project will be evaluated by The Ministry of Economy. If it is accepted by the Ministry then it will be submitted to the Council of Ministers for supporting decision. Based on the Council decision, an investment certificate will be issued by the Ministry of Economy. All related government agencies will provide the incentives that have been included in the certificate.