Turkey: Decree 2012/3305 on investment incentives regime amended

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A Decree 2017/9917 regarding the investment incentives regime, which amends Decree 2012/3305, was published on 22nd February 2017 in the official gazette.  This decree entered into force on the day of its publication. According to the amended Article 10 of Decree 2012/3305, sales or leasing of software and royalties paid to taxpayers with an investment certificate are free from VAT, Article 18 of Decree 2012/3305 was changed. According to this, the industrial zones of Kars, Ağrı, Iğdır, Diyarbakır, Şanlıurfa, Mardin, Batman, Siirt by Şırnak and Kilis are covered by the Attraction Centre Program. The new provision of Article 23/A has been added to Article 23 of Decree 2012/3305. Under the new provision, taxpayers may benefit from a manufacturing unit transfer support package if they transfer manufacturing units to any of the above mentioned industrial zones. The beneficial package gives social security contribution support to employers, income tax exemption for employees, and customs duty and VAT exemption, as well as tax reductions, subject to certain conditions.

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