Recently, a new piece of legislation called Promoting Investments on Project Basis and Amending Some Laws Act has been published on the Official Gazette.
Although the Act is consists of 82 Articles covering a variety of matters, the most significant Article of the Law is a provision in relation to investment incentives. To briefly explain, the Article predicts a new structure for investment incentives and provides a wide range of powers to the Turkish Cabinet of Ministers.
The main objective of the Article is to encourage investments in order to reduce dependency on importation along with reducing the current account deficit, supporting investments for underdeveloped areas etc.
The Article provides that the different types of incentives will be granted by the Cabinet to investors should they fulfil certain requirements.
The incentives includes discount in corporate tax or exemption from corporate tax, contributions, exemption from customs duties, coverage of energy usage expenses, financial support etc.
If you are investing or planning to invest in Turkey, contact our company law team to find out how you can benefit from this new Act.
