TAX NEWS NO: 2016/5
April 15, 2016
Amendments have been made to the Decree No. 2012/3305 pertaining to investment incentive system.
With the Council of Ministers Decision no. 2016/8715 which was promulgated in the Official Gazette dated 08.04.2016, certain amendments have been made to the Decree No. 2012/3305 on State Supports for Incentives.
The new regulation can be summarized as follows:
-
Interest support for strategic investments will be provided within the scope of the incentive certificates to be issued regarding the applications to be made until 31.12.2016 (including this date)
-
Insurance premium employer's share support that in the large-scale investments and the investments supported within the scope of regional incentive applications, will be applied with the following periods:
|
Regions
|
Investments initiated as of 31/12/2016 (including this date)
|
Investments initiated as of 01/01/2017
|
|
1
|
2 years
|
-
|
|
2
|
3 years
|
-
|
|
3
|
5 years
|
3 years
|
|
4
|
6 years
|
5 years
|
|
5
|
7 years
|
6 years
|
|
6
|
10 years
|
7 years
|
-
In large-scale investments and investments carried out within the scope of regional application, in case the investment has commenced as of (including) 31.12.2016 within the framework of the article 32/A of the Corporate Tax Law, the reduction rates to be applied to corporate tax or income tax and the investment contribution rates will be applied as below:
|
|
Regional Incentive Applications
|
Large-Scale Investments
|
|
Regions
|
Investment contribution rate (%)
|
Corporate tax or income tax reduction rate (%)
|
Investment contribution rate (%)
|
Corporate tax or income tax reduction rate (%)
|
|
1
|
15
|
50
|
25
|
50
|
|
2
|
20
|
55
|
30
|
55
|
|
3
|
25
|
60
|
35
|
60
|
|
4
|
30
|
70
|
40
|
70
|
|
5
|
40
|
80
|
50
|
80
|
|
6
|
50
|
90
|
60
|
90
|
-
Integrated investments for the manufacture of flat aluminum products with direct chill slab casting and hot rolling method have been considered as primary investment subjects. Thus, above mentioned investments undertaken in the 1st to 5th regions, can benefit from the regional supports applied for the 5th region and in case that they are carried out in the 6th region, they can benefit from the regional supports applied for the 6th region.
-
Tourism investments or investments for sea tourism facilities with investment or operation certificates have been considered as in regional investment subjects. Thus, investments abovementioned can benefit from the regional supports applied in their regions.
-
Airport investments with a minimum fixed investment amount of TL 200 million have been included in large-scale investment subjects.
Yours sincerely,
Deloitte Turkey
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
These materials and the information contained herein are provided by Deloitte Turkey and are-intended to provide general information on a particular subject or subjects and are not on exhaustive treatment of such subject(s).
Accordingly, the information in these materials is not intended to constitute accounting, tax, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect your personal finances or business, you consult a qualified professional adviser.
These materials and the information contained therein are provided as is, and Deloitte Turkey makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte Turkey does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality.
Deloitte Turkey expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.
Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk off loss resulting from the use thereof. Deloitte Turkey will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statue, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein.