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Government of Turkey annually issues a list of state aid on
investments. In order to take advantage of such state aid, a special
"State Aid Certificate" must be obtained together with the
investment approval from UT. According to the current state aid
regime, a minimum investment of at least 6 billion TL is necessary
for priority development regions and 10 billion TL for other
regions. State aid for 1995 are as follows:
- Tax Allowances (30-100% according
to location the field of investment)
- Refund of VAT for locally purchased machinery (An additional 10%
repayment for special sectors).
- Customs exemption on imported machinery (customs exemption as an
investment state aid can only be applied on investment goods
imported from third countries.)
- Customs exemption on raw materials (in accordance with the
specifications mentioned in the regime).
- VAT Deferral on Imported Machinery and Equipment.
- Allocation of land
- Discounts on electricity charges
- Special credits
In addition to the state aid
mentioned above, investors can benefit from additional tax deferrals
which are determined by the Ministry of Finance, annually. For 1995,
corporations can defer up to 20% of their annual corporate tax
amounts provided that this sum does not exceed the R & D
expenditure of the corporation during the same year.
* This state aid may change from year
to year. For further information the General Directorate of Foreign
Investments Undersecretariat of the Treasury should be contacted .
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