Turkey has very recently established its Sovereign Wealth Fund (Türkiye Varlık Fonu in Turkish, herein shall be referred to as “the Fund”)
The Fund’s assets will be managed by the Turkish Sovereign Wealth Fund Management Incorporation (Türkiye Varlık Fonu Yönetimi Anonim Şirketi in Turkish, herein shall be referred to as “the Incorporation”)
The Incorporation will manage the Fund and the 50 million TL founding capital of the Incorporation will be provided by Privatization Administration.
The Incorporation and other companies that may be set up by the Incorporation will not be subject to Turkish Court of Audit’s review. Instead, the Incorporation will be reviewed by independent auditors that are assigned by the prime minister and the Incorporation will be exempt from the Income and Corporate Tax and VAT.
The Incorporation is anticipated to engage in financial and commercial businesses by forming corporations and partnerships with native and foreign investors both on national and international scale. The government expects that the Fund will generate 200 billion dollars income once it is fully functional as it will be financing mega projects.
