The Turkish Petroleum Law came into force on 11 June 2013. This Law introduced a revolution in the Turkish oil and gas industry as it levelled the playing field for foreign investors and removed the privileged rights of the State oil company.
As regards taxation matters, the sum of the income tax deductions on net income is set not to exceed 55% for the petroleum right owners.
The Turkish Petroleum Law has also introduced a new type of incentive for limited liability taxpayers. The limited liability taxpayers are allowed to deduct 5% of their taxes on payments made from their self-employment income. The import or delivery of all materials, equipment, fuel and land, sea and air transportation vehicles particular to petroleum affairs are exempt from customs duties, subject to the approval of the General Directorate of Petroleum Affairs. Transactions conducted and related documents are exempt from charges and duties under the Turkish Petroleum Law.
The petroleum right owners importing and transferring the above mentioned materials do not have ownership rights of the materials until 10 years have passed, commencing from the date of the clearance of the materials.
