07.12.2022/77
Important Changes Have Been Made to the Decision on State Aid for Investments
With the Presidential Decision No. 6435 published in the Official Gazette dated 30.11.2022 and numbered 32029, some changes have been made to the Decision on State Aid for Investments (Decision) No. 2012/3305.
The changes made with this Decision are summarized below:
1. Some Port and Storage Facility Investments in Industrial Zones Can Be Supported as Strategic Investments.
A seventh paragraph has been added to Article 8 titled “Strategic Investments” of the Decision. According to this addition, port and storage facility investments with a minimum amount of three billion Turkish Liras in industrial zones may be supported as strategic investments.
For these supports, the conditions in the first paragraph of the relevant article and the “commission evaluation” condition in the third paragraph will not be required:
a) The minimum fixed investment amount is over fifty million Turkish Liras (including non-natural gas energy investments to meet the energy needs of these investments, proportional to the installed capacity of the facility).
b) The total domestic production capacity of the product related to the investment is less than the imports.
c) The added value to be provided by the investment according to the principles determined by the Ministry must be at least forty percent.
ç) The total import amount of the product related to the investment in the last year must exceed fifty million US Dollars.
2. Supports Under Investment-Related Advance Credit With Investment Commitment Have Been Abolished.
The (f) clause of the first paragraph of Article 11 regarding supports under investment-related advance credit has been repealed. Accordingly, no interest support will be provided for these types of credits.
3. Tourism Accommodation Investments in Tourism Centers Have Been Included Among the Priority Investment Topics.
With the amendment to Article 17/1-ç of the Decision, tourism accommodation investments in “tourism centers” have been included among the priority investment topics.
This support was previously available for tourism accommodation investments that could benefit from regional supports in culture and tourism protection and development areas or in thermal tourism.
4. The Completion Visa Process for Investors Unable to Present Tourism Operating Certificates Has Been Abolished by Converting Their Incentive Certificates to the General Incentive System.
The regulation allowing incentive certificates for hotel investments, for which a tourism operation certificate could not be presented during the investment completion visa process, to be converted to the general incentive system has been repealed.
5. The VAT Refund Regulation for Building Construction Expenses Has Been Removed in Parallel With the Exemption Regulation in the VAT Law.
With Law No. 7394, the VAT refund regulation for construction works under investment incentive certificates in the temporary Article 37 of the VAT Law has been converted into an exemption application.
Accordingly, the regulation for VAT refunds on building and construction expenses for investments made under the investment incentive certificates for manufacturing industry (US-97 Code: 15-37) between 01/01/2017 and 31/12/2024 has been repealed.
6. Investments in Central Heating Radiators, Boilers, and Steam Boilers Have Been Removed From Regional Supports.
The row corresponding to investments in central heating radiators, boilers, and steam boilers in Table 29 of Appendix 2A of the Decision has been repealed, and these investments have been removed from regional supports.
7. Additions Have Been Made to the Provinces Supporting Investments in Metal Goods Manufacturing Under Regional Supports.
In the Sector Numbers Table of Appendix 2B of the Decision, sector code 28 has been added to the rows corresponding to Ankara, Antalya, Bursa, Eskişehir, İzmir, Kocaeli, and Muğla provinces. As a result, investments in metal goods manufacturing will now be supported under regional supports in these provinces.
8. Flour Investments Under Modernization Have Been Included in the Supported Investments Under Regional Supports.
With the addition of the phrase “Modernization type flour investments” to footnote (5) of the Decision, these investments have been included among the investments that can be supported under regional supports.
You can access the related Decision here.
Kind regards,
BİLGENER
