A package consisting of 10 items was prepared to clear the way for the foreign investors.
Government has prepared a special invitation for global investors.
10-item investment package to encourage global giants to move their field offices and production centres to Turkey will be submitted to the Cabinet this week. According to this, there will be discount in the income and corporate tax of the companies which move their field offices in Greece, Italy and England to Turkey. Stamp Duty-Fee burden is reducing and free of charge consultancy service will start. Regional production centre notion will be included in tax laws for the first time.
REGIONAL PRODUCTION CENTRE
Bill includes a number of matters in the field of activity especially improving the investment environment. Ministry of Finance Naci Ağbal gave the good news: “Turkey will become regional service centre”. The package also includes arrangements in relation to the Law on Stamp Duty and Fees. Stamp duty shall not apply to the increased amount in the case of making changes in the contracts which are taxed based on the maximum amount. Within the scope of the arrangement, stamp duty shall be returned if public procurements are cancelled. In the package, scope of the discount in Corporate Tax will be extended.
10 IMPORTANT MOVES
*Tax incentive for moving regional office to Turkey
*Investors who bring their regional production centres will not pay Corporate Tax
(Corporate Tax is 20% of the company’s income in Turkey)
*Stamp Duty and Fee burden of the investor will be reduced
*Free of charge consultancy for the investor will begin
*Low interest loan for entrepreneurs
*Investment lands inventory will be opened to investors
*Long term loan for technology investments
*Customs procedures will be easier
*Energy license-registration-permit procedures will be faster
*Opening a workplace will not take more than one week
WAGE SUPPORT TO THE ONES WHO REMAIN IN BES (Personal Retirement Insurance)
Ağbal said that they will provide tax incentives to the ones who carry on with monthly salaries instead of receiving lump sum payment after remaining in BES or life insurance systems for some time. Ağbal said; “Time periods anticipated for remaining in BES are close. If people choose to remain in the system and have monthly salaries instead of leaving the system, we will make improvements in the present tax system in their favour.”
BRIEF TAX STATEMENT AND SOCIAL SECURITY WILL BE COMBINED
In his speech at the introduction of the Technical Support Project for Increasing Administrative Capacity in Fighting against Grey Economy and Revenue Administration, Mr Minister Ağbal stated that brief tax statement and social security statement will be combined. Ağbal said; “We will make some tax arrangements to encourage saving in the tax bill.” In response to the question “Do you expect any reduction in interests?” he said; “Chairman of the Central Bank, the Central Bank and authorized institutions will make a decision by taking all these developments into consideration”. Supporting interest free finance, Ağbal said; “By means of removing additional costs in interest free finance practices, we will provide the same conditions to the interest free finance organizations as the funding costs in loans.”