Can workplaces employing foreign workers benefit from incentives No. 6111 and 27103?

Foreign workers are also regular 4/a workers after obtaining work permits and can benefit from SSI incentives.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

• Delivery of sea, air and railway vehicles,
• Delivery of floating system and vehicles,
• Delivery and services done concerning the manufacture and construction of these vehicles.
• Modification, maintenance and repair services of these vehicles

provided to the taxpayers whose businesses are leasing, air and railway transportation vehicles, floating system and vehicles or operating these vehicles in various forms are exempt from value added tax.

(Value Added Tax Law a. 13/1-a, Value Added Tax Law General communiqué II/B-1)

(2) Exploration, operating, enrichment and refining activities concerning gold, silver and platinum and the delivery of goods and services provided to the businesses deal with oil exploration activities within scope of Oil Exploration Law provisions; are exempt from value added tax.

(Value Added Tax Law a.13/1-c, Value Added Tax Law General communiqué II/B-3, II/B-4)

(3) Delivery of machines and equipment to the taxpayers who has the investment incentive certificate are exempt from value added tax, under condition that the delivery is in the scope of this certificate.

(Value Added Tax Law a.13/1-d, Value Added Tax Law General communiqué II/B-5)

(4) Delivery of goods and services concerning businesses mentioned hereafter to the taxpayers who deal with construction, restoration and widening businesses of ports and airports by themselves or make others deal with these businesses are exempt from value added tax. (Value Added Tax Law a. 13/1-e, Value Added Tax Law General communiqué II/B-6)

The delivery of goods listed under Annex II List of Excise Tax Law; under condition that these goods are provided to the firms, who deal with exploration and production of oil according to the 6326 numbered Oil Law to be used in those activities, are exempt from tax. (Excise Tax Law a.7.1.b) (Excise Tax Law List (I) General Communiqué II/C-2)

Source: Revenue Administration of Republic of Turkey / link: https://www.gib.gov.tr/en/references-and-resources/tax-incentives/e
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

• Real persons, ordinary partnerships, stock corporations, cooperatives, joint ventures;
• Public institutions and agencies,
• Public professional organizations,
• Associations and foundations,
• Turkish branches of foreign-based companies

can benefit from supports extended under the Investment Incentives Program of Turkey provided that they satisfy all criteria set for each scheme.

As per Law No. 4875 on Foreign Direct Investments, companies established in Turkey by real persons of foreign nationality and/or by legal persons according to the laws of foreign countries are eligible for benefiting from all supports within the scope of the Investment Incentives Schemes under equal conditions with domestic investors, as they are also classified as Turkish companies. Thus, these companies are considered as stock corporations and supported by the Investment Incentives Program. “Branches”, without company status, founded in Turkey in accordance with the Turkish Commercial Law by foreign companies based in other countries can also benefit from these supports.

Incentive schemes granted by the new program can be applied by a real person of foreign nationality through a joint-stock or limited liability company, and by a foreign company based in foreign countries through a joint-stock, limited liability company or a branch established in Turkey.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/eligibility)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Unfortunately, the investment projects that are being supported by other government institutions cannot benefit from the investment incentive program, thus a certificate cannot be issued.

We are planning to lease the machinery and equipment in terms of our investment project. Can that project be supported?

It’s possible to lease the whole or partial amount of machinery and equipment. However, the total amount of machinery and equipment for each leasing company should be at least 200.000 TL.

If an investment project is realized in an Organized Industrial Zone, can we have additional support in terms of the general investment incentive scheme?

The investments within OIZs are entitled for more favorable rates only if the investments are meeting the criteria of large scale or regional investments.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/faq)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

It’s a certificate for the investment projects that are entitled to receive support according to the measures of the new Decree and includes the main characteristics of the investment project.

Who can apply for an Investment Incentive Certificate?

Real persons, ordinary partnerships, stock corporations, cooperatives, joint ventures, public institutions and agencies, public professional organizations, associations and foundations, Turkish branches of foreign-based companies can benefit from supports extended under the Investment Incentives Program of Turkey provided that they satisfy all criteria set for each scheme.

Is there any list of projects that are not supported?

The Annex-4 of the Investment Incentive Decree lists all the projects that are not entitled for support.

Are the investment incentive certificates issued before Jan 1, 2012 entitled for these new supports?

Unfortunately, this new investment incentive system is for the certificates issued before the enactment date. However, according to the Council of Minister’s Decree no. 2009/15199, the certificates issued between January 1, 2012 and June 19, 2012, investors can benefit from the new system if they wish.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/faq)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkey’s new investment incentive system, launched in April, 2012, became effective by the “Council of Minister’s Decree No. 2012/3305 on Government Subsidies for Investments” of June 15, 2012. The Regulation No. 2012/1 defines procedures and principles for the implementation of the Decree.

The new Investment Incentive Program that is vital for Turkey’s 2023 vision as well as for the production and export-oriented growth strategy aims to:

• steer savings into high value-added investments,
• boost production and employment,
• encourage large scale and strategic investments with high R&D content for increased international competitiveness,
• increase foreign direct investments,
• reduce regional development disparities,
• promote investments for clustering and environment protection,

in line with the objectives set in development plans and annual programs.

Supports provided by this new Investment Incentive Program will be available for all investments with an incentive certificate granted after January 1, 2012.

In order to further accelerate investment decisions, the new Investment Incentive Program grants more advantageous supports for investments to be initiated by the end of 2015. Spending at least 10% of the investment amount (minimum 5 million TL for the investments over 50 million TL) will suffice for the investment to be considered as started.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/investment-incentives)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Within the scope of Articles 23 and 23A of the Decision No. 2012/3305 on Subsidies in Investments, in the transfer of the current investment from Region 4 to Region 1 (after the region change and 5 years have expired):

1- Can investment incentives rate and incentives of discounted corporate tax rate, which are not used in the investment incentive region, be used?

2-What will be the 5-year incentive previously used by the Insurance Premium employer support due to region change and will employer benefit from premium support in the 6th year?

Change of Investment Region

(1) Application of the demand for region change related to investments with incentive certificate is made to the relevant authority which evaluates the applications. Demands for such change are finalized due to regional and sectoral restrictions.

(2) In addition to the existing investments, the demands for changes in the scope of the incentive certificate are evaluated according to their provisions.

(3) Applications made to the relevant chambers are finalized by taking the opinion of the Undersecretariat.

(4) The subsidy elements applied to expenditures that cannot be transferred instead of new investments are withdrawn from the investor within the framework of the relevant legislation, from the investments made with the excess of these subsidy elements, if the subsidy used for the investments made before the change of investment region is more than the subsidy elements in the new investment region.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

We obtained a work permit for a Syrian employee of one of my taxpayers. Can they benefit from incentive numbered 17103? The number of Turkish employees is 15.

The foreign employee who obtained the work permit has 4/a insurance now. They can benefit from the incentive of Social Security Insurance like Turkish employees, if they fulfill the conditions.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Foreign or not, everyone is 4/a workers. Therefore, there is not any other implementation on incentive rates applied to Turkish citizens.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.