Important Amendments to the Decree on State Aids in Investments
With the Presidential Decision No. 6435 published in the Official Gazette No. 32029 on November 30, 2022, some changes have been made to the Decision on State Aids in Investments No. 2012/3305 (the Decision).
The changes made by the aforementioned Decision are summarized below:
1. Certain Port and Storage Facility Investments in Industrial Zones Can Be Supported as Strategic Investments.
Article 8 of the Decision titled “Strategic Investments” has been amended by adding a seventh paragraph. According to this amendment, port and storage facility investments amounting to at least three billion Turkish Liras in industrial zones can be supported as strategic investments.
To provide these supports, the conditions specified in the first and third paragraphs of the relevant article, including the “commission evaluation” requirement, will not be applied:
- a) The minimum fixed investment amount must be more than fifty million Turkish Liras (including energy investments that are not based on natural gas, proportional to the installed power of the facility).
- b) The total domestic production capacity related to the investment product should be less than the amount of imports.
- c) The value added generated by the investment, as specified in the principles to be determined by the Ministry, must be at least forty percent.
- ç) The total import amount for the product concerned in the last year must exceed fifty million US Dollars.
2. Investment Commitment-based Advance Credit Support Has Been Abolished.
The first paragraph of Article 11 of the Decision regarding investment commitment-based advance credit support has been repealed. Accordingly, no interest support will be provided for credits within this scope.
3. Tourism Accommodation Investments in Tourism Centers Are Now Included in Priority Investment Areas.
With the change in Article 17/1-ç of the Decision, tourism accommodation investments in “tourism centers” are now included in the list of priority investment areas.
This support was previously provided only for tourism accommodation investments in cultural and tourism protection and development areas or those related to thermal tourism, eligible for regional supports.
4. Completion Visa Transactions for Investors Who Cannot Provide a Tourism Business Certificate Have Been Abolished by Converting Their Incentive Certificates to the General Incentive System.
Article 24/9 of the Decision, which allowed the conversion of incentive certificates for hotel investments where the investor could not present a tourism business certificate during the completion visa process to the general incentive system, has been repealed.
5. VAT Refund Regulations on Building Construction Expenditures Have Been Removed in Line with the Exemption Regulations in the Value Added Tax Law.
With Law No. 7394, the VAT refund regulation for construction works related to investment incentive certificates under the temporary Article 37 of the Value Added Tax Law was converted into an exemption application.
As part of this, the regulation on VAT refunds for building and construction expenses related to manufacturing industry investments (US-97 Code: 15-37) under investment incentive certificates issued between January 1, 2017, and December 31, 2024, has been repealed under the temporary Article 8 of the Decision.
6. Investments in the Production of Central Heating Radiators and Boilers, as well as Steam Boilers, Have Been Removed from Regional Support Coverage.
The 29th row of the table in Annex 2A of the Decision has been repealed, removing investments in the production of central heating radiators, boilers, and steam boilers from regional support coverage.
7. Additional Regions Have Been Included for Investments in the Manufacturing of Metal Goods Under Regional Support.
The sector code 28 has been added to the rows corresponding to the provinces of Ankara, Antalya, Bursa, Eskişehir, İzmir, Kocaeli, and Muğla in the table of “Provinces Eligible for Regional Support in Certain Sectors” in Annex-2B of the Decision. As a result, investments in the manufacturing of metal goods will now be supported in these provinces under regional support.
8. Flour Investments Under Modernization Have Been Included in Regional Support.
With the addition of the phrase “Flour investments under modernization” in footnote (5) of the Decision, such investments have been included among those eligible for regional support.
You can access the relevant Decision here.
Best regards,
BİLGENER
