In the new incentive system, exclusive support will be provided to investments oriented towards innovative and value-added production, carried out mainly with equity, candidate to be a part of the global value chain and compatible with regional cluster priorities.
Within the scope of the calendar regarding the Economy Reform Package, it is planned to simplify the existing investment incentive system until the end of the year and to make it selective and continuous.
According to the information compiled by the AA correspondent, within the framework of the Economic Reform Package announced by President Recep Tayyip Erdogan, the targets to encourage investments will be implemented by responsible and relevant institutions, including the Presidency Strategy and Budget Directorate, Presidency Investment Office, Ministries of Family, Labor and Social Services, Treasury and Finance, Industry and Technology and Justice.
The actions, consisting of 3 main headings for the enactment of a law on the protection of private sector investments in the promotion of investments, reform of state subsidies and reform of the investment incentive system, will begin to be completed by the middle of the year.
In this context, a new system for the protection of private sector investments will be implemented by the end of the year in order to increase predictability in investments, reduce bureaucracy and produce quick solutions to problems encountered during the investment process.
An “Investment Dispute Authority” will be established to facilitate and accelerate private sector investments. Investment coordination units will be established within the ministries and the post-investment monitoring and coordination function of the Presidential Investment Office will be strengthened. The work in this framework will be completed by December 31st.
Comprehensive data on these programs will be collected instantly in a complete and thorough center, and all support applications will be accessed more easily, quickly and effectively from a single platform.
Duplicate applications will not be allowed
Until the end of the year, the current incentive system will be simplified, and it will have a selective and timed structure. In addition, a system that will not allow duplicate applications will be established.
In the new incentive system, exclusive support will be provided to investments oriented towards innovative and value-added production, carried out mainly with equity, candidate to be a part of the global value chain and compatible with regional cluster priorities.
Approaches that will compete with cash incentive models applied to attract new investments in peer countries will be developed, cash incentive practices will be initiated with a project-based incentive system.
In large investments, with partial completion, the opportunity to make a revaluation of the contribution amount to the investment entitled will be provided.
In the incentive programs for new investments, it will be possible to reduce the amount of contribution to the investment deserved from other tax payments other than corporate tax at certain rates.
Additional incentives for women and youth employment
SSI premium support periods applied in investment incentives will be applied by giving additional periods in case women and young people are employed. Studies on this will be completed by the middle of the year.
Until the end of March next year, the necessary changes will be made in the Personal Data Protection Law, based on the provisions of the European Union (EU) General Data Protection Regulation (GDPR) for data transfer abroad.
Source: AA / Translated by Irem Yildiz