Amendment to the Communiqué on the Implementation of the Decision on Project-Based State Aid for Investments
<strong>On 01.10.2022, the Official Gazette published Circular No. 2022/1, which amends Circular No. 2019/1 regarding the Implementation of the Decision on State Support for Investments Based on Projects. The changes made are listed below:</strong>
1. <strong>With Circular No. 2022/1, an additional subparagraph (ç) has been added to Article 3 titled “Definitions” of Circular No. 2019/1:</strong>
<em>“Total fixed asset amount recorded in the institution’s assets: the gross amount of economic assets that are subject to depreciation under Article 313 of the Turkish Tax Procedure Law No. 213, before deducting the accumulated depreciation.”</em>
2. <strong>The first paragraph of Article 6, titled “Implementation Principles of Qualified Personnel Support” in the same Circular, has been amended as follows:</strong>
<em>“Qualified personnel support shall start from the month following the notification of the eligible qualified personnel to the investor, based on the investor’s application, and for each qualified personnel, the amount determined in the Support Decision, which is not to exceed the monthly maximum support amount, will be paid according to the amount specified in the report prepared by the sworn financial consultant, after examining the bank account movements, payrolls, and other documents related to payments made to the qualified personnel. The support will be applied for the duration specified in the Support Decision. Rights related to periods prior to the inclusion of personnel in the qualified personnel category shall not be considered in the determined amount. If the total maximum support amount specified in the Support Decision is reached, the payments for qualified personnel support will cease.”</em>
<strong>This change adds the conditions of showing the salary on the payroll, paying via bank transfer, and linking the payment to the sworn financial consultant’s report. Additionally, it specifies that the rights prior to the inclusion of personnel in the qualified personnel category will not be taken into account in the determined amount.</strong>
3. <strong>The fourth paragraph of Article 9, titled “Implementation Principles of Energy Support,” has been amended as follows:</strong>
<em>“For the investment expected to benefit from energy support, it is necessary to use a separate meter. However, if some of the facilities using the same meter are not related to the investment under the Support Decision, and if it is not possible to separate the energy consumption, one of the following options may be applied upon the company’s request:</em>
<em>a) The energy consumption amount and average consumption for one year prior to the start of the investment, as verified by the relevant distribution company, will be used. The energy support can be paid based on the determined ratio of the energy consumption amount exceeding the average consumption considered as the current consumption.</em>
<em>b) The ratio of the total fixed asset amount registered in the institution’s assets, including amounts for ongoing investments, at the time of application for completion certification, to the fixed asset investment made under the Support Decision, can be used to determine the energy support. In this calculation, the total fixed asset value in the institution’s assets will include inflation-adjusted values if applicable.”</em>
<strong>This change introduces a new criterion for determining the energy support in the case where separate meters cannot be used, where the energy support will be determined based on the ratio of fixed asset investments to total fixed asset values.</strong>
4. <strong>Lastly, with the amendment in the second paragraph of Article 13, titled “Employer’s Social Security Premium Support,” a sworn financial consultant’s report related to additional employment and investment expenses has been added as a condition for benefiting from the social security premium employer’s share support in the case of partial commissioning.</strong>
<strong>You can access the relevant Circular <a href=”https://www.resmigazete.gov.tr/eskiler/2022/10/20221001-2.htm” target=”_blank” rel=”noreferrer noopener”>here</a>.</strong>
<strong>Best regards,
BİLGENER</strong>
