The new Economic Reform Package unveiled by President Recep Tayyip Erdoğan on March 12 includes particular subjects to encourage investments in Turkey. The package reveals items related to improving the investment environment under three main headings.
A Law Will Be Enacted on the Protection of Private Sector Investments
- A new system for the Protection of Private Sector Investments will be introduced in order to improve predictability in investments, reduce red tape, and offer quick solutions to issues encountered during the investment process.
- An Authority of Investment Disputes will be set up to facilitate and accelerate private sector investments.
- Investment Coordination Units will be established within the Ministries, while the investment aftercare and coordination functions of the Investment Office will be strengthened.
A Reform Will Be Implemented on State Supports
- Principles and Fundamentals will be formed to ensure that support programs are prepared and implemented under planned and predictable targets.
- Comprehensive data on all support programs will be collected at a single center completely and a faster, easier and more effective access to all support programs will be provided at a single platform.
State Incentıves Will Be Reformed
- The current incentive system will be simplified and a more selective, transitory and non-repetitive system will be introduced.
- In the new incentive system, additional support will be provided to investments focusing on innovative and value-added production, equity-funded, compatible with the global value chain and regional cluster priorities.
- Alternative approaches that will compete with the cash incentive models in peer countries will be developed and started with the Project-based Incentive System.
- With partial completion in large investments, an opportunity for revaluation for the investment contribution amount will be provided.
- In incentive programs for new investments, it will be possible to reduce the investment contribution amount from other tax bases along with corporate tax.
- Necessary amendments will be made to the Law on Protection of Personal Data under the provisions of the EU General Data Protection Regulation (GDPR) on data transfer abroad.