The new investments at the provinces within the scope of the law benefits from the supports and incentives stated in article 3,4 and 6 of this law, for the following periods:

– Till the date of 31/12/2012 if the investment finishes until 31/12/2007 under conditions stated in article 4
– 5 years if the investment finishes until 31/12/2007
– 4 years if the investment finishes until 31/12/2008
– 3 years if the investment finishes until 31/12/2009 (Law numbered 5084a7/h)

1.Income Tax Withholding Incentive
The burden on the employment is decreased as the income tax amount which is assessed due to the new recruitment is cancelled on the income withholding tax declaration of the employer. (Law numbered 5084 a.2, a.3, General Communiqué of support for investment and employment serial number 1 and number 2)

The income tax withholding incentive stated at Law numbered 5084 article 3 for the investments completed until the date of 31/12/2004, is ended at the date of 31/12/2009.

On the other hand, according to the article 7/h of Law numbered 5084, the period for benefiting the income tax withholding incentive due to the new investments at the provinces stated at this law shall be applied as follows:

• 5 years starting from the date of completion for the investments completed between 01/01/2005-31/12/2007
• 4 years starting from the date of completion for the investments completed between 01/01/2008-31/12/2008
• 3 years starting from the date of completion for the investments completed between 01/01/2009-31/12/2009

Besides, the businesses at Bozcada and Gökçeada which are the districts of Çanakkale province; shall benefit from the income tax withholding incentive stated at Law numbered 5084 article 3 for five years (up till 4/4/2012) starting from the date of 04/04/2007 in case they fulfill the conditions stated at this article .(03/03/2010 dated and 2010-2 numbered Incentive for Investment and Employment Circular)

2.Employer’s Contribution in Insurance Premium Incentive
The employer’s contribution in insurance premiums which are assessed on the incomes base for the premiums according to the law numbered 506 articles 72 and 73 for the newly recruited workers, who are employed by the income or corporate tax payers at the provinces within the scope of the incentive law, are fully or partly paid by the Treasury. (Law numbered 5084, a.4)

3.Free Investment Place Allocation
Terrain or land belongs to the Treasury, supplementary budgeted institutions, municipalities or provincial administrations shall be transferred or certificate of occupancy shall be given to the real or legal persons who invest in the provinces stated at the law with a minimum of 30 employees. (Law numbered 5084, a.5)

4.Energy Support
20% of the electricity expenditures of the investments between 01/04/2005-31/12/2008 in the provinces stated in law on livestock (fishery products and chicken farming included), greenhouse, certified seed raising and cold stores which has minimum 10 employees and on manufacturing, mining, accommodations for tourism, education or health which has minimum 30 employees, are paid by the Treasury. (Law numbered 5084, a.6)

5.Excise Tax Support
The deliveries of the following goods stated at Annex I list Table (A) of Excise Tax Law until 31/12/2012 are exempted from excise tax:

• 19.61.00.11, 2710.19.63.00.11, 2710.19.65.00.11 and 2710.19.69.00.11 T.C.T.T (Turkish Customs Tariff Code) numbered goods delivered to be used in production of electricity
• 19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods delivered to be used in production of electricity to the plants which uses natural gas as primary combustible, fuel as secondary combustible with the order and approval of Energy and Natural Resources Ministry. (ETL Artificial article 5) (Excise Tax General Communiqué 15)6.Incentives Stated in 2464 Numbered Revenues of Municipalities Law
  Buildings and plants constructed at organized industry regions and industry and small crafts sites are exempt from building construction duty and duty of the certificate of occupancy. (Revenues of Municipalities Law a. 80)

7.Incentives Stated in 131 Numbered Real Estate Tax Law
The income and corporate taxpayers, who has the certificate of tourism enterprise within the scope of Encouragement of Tourism Industry Law, are exempt from tax for five years beginning after the following year of construction or the date of certification as tourism enterprise in case a current building is allocated for that purpose. (Real Estate Tax Law a.5/b)

The buildings in organized industry regions and small crafts sites are exempt from tax for five years beginning after the budget year when construction is finished. (Real Estate Tax Law a.5/f)

Source: Revenue Administration

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.

– In case the 2207.20.00.10.13 and 2207.20.00.10.14 T.C.T.T (Turkish Customs Tariff Code) numbered bioethanol goods which are produced by domestic agricultural products, are mixed with the 2710.11.45.00.11, 2710.11.45.00.12, 2710.11.45.00.19, 2710.11.49.00.11, 2710.11.49.00.19 T.C.T.T numbered goods listed in list (I) Table (A) of excise tax law, the excise tax amount will be applied discounted with the same ratio as the ratio of the mixed goods. The tax amount determined according to this ratio shall not be less than 98% of tax amount determined for the 2710.11.45.00.12, 2710.11.45.00.19, 2710.11.49.00.11, 2710.11.49.00.19 T.C.T.T numbered goods which does not include bioethanol numbered as 2207.20.00.10.13 and 2207.20.00.10.14 T.C.T.T. (Cabinet  Decree   2005/8704) (Excise Tax Law List (I) General communiqué (III/B-2))

–  In case 2710.19.61.00.11, 2710.19.63.00.11, 2710.19.65.00.11 and 2710.19.69.00.11 T.C.T.T numbered goods listed in list (I) Table (A) of excise tax law, are delivered to be used in production of electricity to be exported, the excise tax amount will be applied as zero. (Cabinet Decree 2006/10798) (Excise Tax Law List (I) General Communiqué (III/B-3))

– In case it is determined that the 2710.19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods which are delivered after the tax amount in list (I) Table (A) of excise tax law is implemented, are mixed with 3824.90.97.90.54 T.C.T.T numbered “auto biodiesel” which is produced from domestic agricultural  products or the fried and expired vegetable oils collected in line with the legislation of Ministry of Environment and Urban Planning, the tax amount will be applied discounted with the same ratio as the ratio of the mixed goods. However, the tax amount determined according to this ratio shall not be less than 98% of the tax amount listed in list (I) Table (A) of excise tax law for the 2710.19.41.00.11, 2710.19.41.00.13 and 2710.19.45.00.12 T.C.T.T numbered goods. For the tax amount calculated as a result of this calculation, 4 digits after comma will be taken into consideration. For the difference between the tax amount applied formerly and the tax amount calculated according to the explained ratio, Article 12/4 of Excise tax law will be applied. (Cabinet Decree 2013/5595) (Excise Tax Law List (I) General Communiqué (III/B-5))

– The delivery of 2711.19.00.00.11 T.C.T.T numbered “Liquefied Petroleum Gas (LPG)” goods listed in list (I) Table (A) of Excise Tax Law, to be used for production of 2901.21.00.00.19 T.C.T.T numbered “ethylene used for other purposes” is exempt from excise tax. (Cabinet Decree 2008/14061) (Excise Tax Law List (I) General Communiqué (III/B-4))

– In case it is determined that the 2711.19.00.00.11 T.C.T.T numbered “Liquefied Petroleum Gas (LPG)” goods which are delivered after the tax amount in list (I) Table (A) of excise tax law is implemented, are used for the production of aerosol, the tax rate would be implemented as zero within the scope of refund method stated at Excise Tax Law article 12/4. (Cabinet Decree 2014/6881) (Excise Tax Law List (I) General Communiqué (III/B-6))

– It is sustained that the tax is applied in reduced amount through refunding method for the goods; which are delivered after the tax amount in list (I) Table (B) of excise tax law is implemented, in case they are used by the manufacturers ( industry registry certified manufacturers) in manufacturing. Thus, the part of the assessed tax amount which will be deferred is determined as zero for the goods in List I Table (B) delivered by the taxpayers to be used in manufacturing of goods that are not stated in List I. (Cabinet Decree 2012/3792) (Excise Tax Law List (I) General Communiqué (III/C-1))

Source: Revenue Administration

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.