The Council of Ministers Decision on “Granting State Aid to Investments on Project Basis” (“Decision”) numbered 2016/9495 was published on 26 November 2016 and it is in effect since then.
The purpose and scope of this Decision is to determine the procedures and principles regarding the project-based supporting of investments that will fulfill the critical needs of our country that can arise in the current situation or in the future, in line with the objectives foreseen in the development plans and annual programs, that will provide the security of supply, that will reduce the foreign dependency, that will realize the technological transformation and that are innovative, intense in research and development and are with high added values.
The below-stated support(s) that are deemed appropriate can be provided to the investments that are endorsed to be supported on project basis and contain the specific features that are stated in the paragraph above within the scope of this Decision:
- Customs duty exemption,
- VAT exemption,
- VAT refund,
- Tax reduction or exemption,
- Employer's national insurance contribution support,
- Income tax withholding support,
- Qualified personnel support,
- Interest support or dotation support,
- Capital contribution,
- Energy support,
- Public procurement guarantee,
- Investment area assignment
- Substructure support,
- Granting exemption to permissions, assignments, permits, licenses and registration regulated under laws and other restrictive provisions or executing facilitating regulations for legal and administrative processes.
In brief, it is aimed to provide specific supports to investments that may assist in improving the economy of our country in line with the state’s economic policy and other applicable regulations.
By Ecem Baglarlıoglu, Attorney at Law, Moral Law Firm
