Investment Incentive Certificate Under Turkish Law

What Is The Investment Incentive Certificate?

An Investment Incentive Certificate is a crucial document enabling companies to access various investment incentives and support provided by the state, primarily through the Investment Incentive System. This certificate allows businesses to apply for investment incentive programs, gaining benefits such as tax reductions, tax refunds, and allocated land. 

The advantages offered under the Investment Incentive System include:

• VAT exemption
• VAT refund
• Customs duty exemption
• Tax reduction
• Employer’s share of insurance premium support
• Employee’s share of insurance premium support
• Interest or profit share support
• Allocation of investment location

These incentives may vary based on the industry and nature of the investment.

Who Can Obtain an Investment Incentive Certificate?

Companies engaged in national and international activities, including:

• Sole proprietorships
• Public institutions
• Associations and foundations
• General partnerships
• Joint-stock companies
• Cooperatives
• Public-interest professional organizations
• Business partnerships
• Branches of foreign companies with headquarters abroad
• Foreign-invested companies and their branches

How to Obtain an Investment Incentive Certificate?

The application process for an Investment Incentive Certificate is facilitated through the E-TUYS system managed by the Ministry of Industry and Technology. Access to the E-TUYS platform is granted to individuals with an electronic certificate. Authorization requests, once approved by the Ministry, enable users to complete the application steps. Therefore, the initial step for investors is to compile the necessary documents and apply to the Ministry for authorization.

The authorization process involves the following steps:

• Drafting a notarized commitment letter during the application, along with completing a user form.
• Transmitting the prepared documents through the company’s registered electronic mail (KEP) address to the Ministry’s KEP address.
• Upon Ministry approval of the authorization request, the firm is notified via the email used during approval.
• Authorized individuals can then update investor details or initiate processes such as applying for an investment incentive certificate.

Documents Required for Obtaining an Investment Incentive Certificate

During the application, the following documents need to be prepared:

• Tax registration certificate
• Receipt or document proving the payment of the fee corresponding to the investment cost through the E-TUYS system
• Introduction feasibility of the project
• Turkey Trade Registry Gazette disclosing the company’s capital amount, partnership structure, and final status regarding its activities
• In the absence of the above document, the original or notarized copy of the Turkey Craftsmen and Artisans Registry Gazette
• In cases where the application is not made by public institutions, a document indicating no debts under the Social Security and General Health Insurance Law within the territory of Turkey, along with information on any existing debts being installment plans and that these arrangements remain intact
• For mandatory investments requiring an Environmental Impact Assessment, documents related to the decision (whether “Environmental Impact Assessment is Not Required” or “Environmental Impact Assessment is Positive”) obtained from the relevant units of the Ministry of Environment and Urbanization
• For strategic investments, a feasibility report containing technical, financial, sectoral analyses, and calculations as specified in Article 8 of the decision on the subject of the investment.

Obtaining an Investment Incentive Certificate is a comprehensive process, and our team is here to guide you through every step, ensuring you maximize the benefits available under the Investment Incentive System. Contact us for tailored assistance in navigating the complexities of investment incentives.

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