Decree concerning State
Encouragements to Investments - Part III
Source: Official Gazette - Decree
concerning state encouragements to investments and the investment encouragement
fund Decree No: 10755; Issued: March 25th 1998
Investment Allowance
Article 7.
For the application of Investment Allowance in accordance with the
additional Article 3. Of the Income Taxation Law No:193, investments to be realized
in connection with an Investment Encouragement Certificate in Normal
Regions or Developed Regions (including investments in Organized Industrial
Zones and investments by SME’s) shall be considered as Special Importance Sector
investments.
Investment Allowance shall be applied at a rate of 100% for investments
realized in Normal Regions and in Priority Development Regions as stated in
Article 5. of this Decree.
In case the ratio is increased, the maximum rate shall be applied for
Priority Development Regions.Top
Value Added Tax (VAT) Support
Article 8.
Within the framework of the Investment Encouragement Certificate the amount
of the VAT paid shall be refunded from the Fund to the investor for
machinery and equipment which has been produced domestically. In Priority
Development Regions an additional 10 points over the VAT rate shall be
implemented.Top
Importation of Used Machinery and Equipment and Facilities
Article 9.
The importation of used machinery and equipment and complete implants
(excluding highway transport vehicles) within the framework of an
Investment Encouragement Certificate can be permitted directly by the
Undersecretariat.Top
Follow-up, Control and Implementation of Sanctions
Article 10.
The use of the Investment Encouragement Certificates in conformity with the
legislation hereby is essential. Concerning the investments realized in
accordance with an Investment Encouragement Certificate, the Undersecretariat
reserves the following rights:
- to supervise the conformity of the realization of investments to the
related legislation,
- to undertake appropriate measures whenever necessary,
- to request information from related organizations,
- to cancel the investment encouragement certificate in case of
non-conformity.
The Undersecretariat shall also take the necessary actions within the
provisions of this Article wherever the enterprise acts in contradiction
with other financial legislation and upon notification by the related
organizations and/or institutions.
Investors, acting contrary to this Decree and to the Communique to be
issued, making fraudulent alteration on the Investment Encouragement
Certificate and on other documents, and giving incorrect or misleading
information will cause the annulation of their Investment Encouragement
Certificate, and these investors can be asked to refund the obtained
encouragement elements in accordance with the provisions of Law No: 6183.Top
Transfer, Change of Possession, Sale and Exportation
Article 11.
In case of transfer, change of possession and sale of an investment as a
whole with an Investment Encouragement Certificate, the Undersecretariat
can authorize the transfer, possession, change and sale by issuing a new
Certificate, regardless whether the concerned investment is eligible for
encouragement according to the prevailing Legislation.
Machinery and Equipment imported or domestically acquired, under an
Investment Encouragement Certificate can be subject to free transfer,
change of possession or sale to other investors having an Investment
Encouragement Certificate, such operations must be notified to the
Undersecretariat within 2 months.
Machinery and equipment can be subject to free transfer, change of
possession and sale after a period of 5 years for imported machinery and
equipment, and after 2 years for machinery and equipment produced within
the country, with the condition of having received the investment
completion visa. The operation of an investment having received the
completion visa with a purpose other than the scope envisaged in the
Investment Encouragement Certificate is subject to the authorization of the
Undersecretariat.
Machinery and equipment within the scope of an Investment Encouragement
Certificate can be exported freely by applying directly to the Customs
Administration. The Undersecretariat must be notified about the exportation
within 2 months by the mentioned authority. Whenever the machinery and equipment
is exported, the encouragement elements shall not be paid back, and the
investment allowance shall not be applied to the remaining portion of the
value of the machinery and equipment.
If there is an outstanding credit debt to the Fund at the date of the
transfer, change of possession, sale or an exportation process, remaining
debt to the Fund shall be paid back totally regardless of the deadline set
forth for the credit. Top
