• Real persons, ordinary partnerships, stock corporations, cooperatives, joint ventures;
• Public institutions and agencies,
• Public professional organizations,
• Associations and foundations,
• Turkish branches of foreign-based companies

can benefit from supports extended under the Investment Incentives Program of Turkey provided that they satisfy all criteria set for each scheme.

As per Law No. 4875 on Foreign Direct Investments, companies established in Turkey by real persons of foreign nationality and/or by legal persons according to the laws of foreign countries are eligible for benefiting from all supports within the scope of the Investment Incentives Schemes under equal conditions with domestic investors, as they are also classified as Turkish companies. Thus, these companies are considered as stock corporations and supported by the Investment Incentives Program. “Branches”, without company status, founded in Turkey in accordance with the Turkish Commercial Law by foreign companies based in other countries can also benefit from these supports.

Incentive schemes granted by the new program can be applied by a real person of foreign nationality through a joint-stock or limited liability company, and by a foreign company based in foreign countries through a joint-stock, limited liability company or a branch established in Turkey.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/eligibility)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Unfortunately, the investment projects that are being supported by other government institutions cannot benefit from the investment incentive program, thus a certificate cannot be issued.

We are planning to lease the machinery and equipment in terms of our investment project. Can that project be supported?

It’s possible to lease the whole or partial amount of machinery and equipment. However, the total amount of machinery and equipment for each leasing company should be at least 200.000 TL.

If an investment project is realized in an Organized Industrial Zone, can we have additional support in terms of the general investment incentive scheme?

The investments within OIZs are entitled for more favorable rates only if the investments are meeting the criteria of large scale or regional investments.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/faq)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

It’s a certificate for the investment projects that are entitled to receive support according to the measures of the new Decree and includes the main characteristics of the investment project.

Who can apply for an Investment Incentive Certificate?

Real persons, ordinary partnerships, stock corporations, cooperatives, joint ventures, public institutions and agencies, public professional organizations, associations and foundations, Turkish branches of foreign-based companies can benefit from supports extended under the Investment Incentives Program of Turkey provided that they satisfy all criteria set for each scheme.

Is there any list of projects that are not supported?

The Annex-4 of the Investment Incentive Decree lists all the projects that are not entitled for support.

Are the investment incentive certificates issued before Jan 1, 2012 entitled for these new supports?

Unfortunately, this new investment incentive system is for the certificates issued before the enactment date. However, according to the Council of Minister’s Decree no. 2009/15199, the certificates issued between January 1, 2012 and June 19, 2012, investors can benefit from the new system if they wish.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/faq)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkey’s new investment incentive system, launched in April, 2012, became effective by the “Council of Minister’s Decree No. 2012/3305 on Government Subsidies for Investments” of June 15, 2012. The Regulation No. 2012/1 defines procedures and principles for the implementation of the Decree.

The new Investment Incentive Program that is vital for Turkey’s 2023 vision as well as for the production and export-oriented growth strategy aims to:

• steer savings into high value-added investments,
• boost production and employment,
• encourage large scale and strategic investments with high R&D content for increased international competitiveness,
• increase foreign direct investments,
• reduce regional development disparities,
• promote investments for clustering and environment protection,

in line with the objectives set in development plans and annual programs.

Supports provided by this new Investment Incentive Program will be available for all investments with an incentive certificate granted after January 1, 2012.

In order to further accelerate investment decisions, the new Investment Incentive Program grants more advantageous supports for investments to be initiated by the end of 2015. Spending at least 10% of the investment amount (minimum 5 million TL for the investments over 50 million TL) will suffice for the investment to be considered as started.

Source: Ministry of Trade (link: https://www.trade.gov.tr/investment/investment-incentives)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

As you know, temporary certificates are securities that are issued by the incorporated companies to substitute for the stock certiciates.  Temporary certificates allow its owners to gain the rights of share ownership such as attending the general assembly meetings, voting, getting dividends. They become invalid once the stock certificates are prepared by the incorporated company and delivered to the partners.

Therefore, for the taxation of incomes resulting from the disposal of the certificates, the provisions of the Income Tax Law regarding the taxation of incomes resulting from the disposal of stock certificates are applied.

Accordingly, in the case where the certificates are disposed within two years following the date of acquisition, the income will be subject to the income tax as gain from appreciation and if the certificates are disposed after two years following the date of acquisition, the income will not be subject to the income tax.

Furthermore, the replacing of certificates with stock certificate, hence the date when the stock certificates are obtained will be regarded as the date of acquisition of stock certificates.

Source: Income Tax Law Numbered 232
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

2- Moreover, incomes stemming from selling out stock certificates of more than a year, belonging to the fully responsible tax payers and traded at the exchange in İstanbul,  are not subject to the withholding.  For these taxes, it is not possible for submitting tax declaration since the article numbered 80 of Income Tax Law cannot be implemented.

3-  Taxation of the income acquired since 01.01.2006;  
– Taxation of the income of stock certificates and purchase and sell earning acquired since 01.01.2006 are subject to withholding within the provisions of the article numbered 67.

– Withholding rate executed over the income of stock certificates and purchase and sell earning of the real people,  is decided as % 0.  There will be no need for annual or peculiar declaration.

4- Taxation of the income acquired before 01.01.2006;  
Taxation of the income of stock certificates and purchase and sell earning acquired before 01.01.2006 are not subject to withholding within the provisions of the article numbered 67.  These incomes will be taxed according to the legislation provisions legit on 31st of December of 2005, and no matter how much is the rest amount, it will be declared.

___________________________________________________________________

Source:Income Tax Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

IN THE TURKISH TRADE LAW, SHARE CERTIFICATE PRESENTMENT AND CERTIFICATE PRESENTMENT ARE DESCRIBED AS FOLLOW.

ARTICLE 486- Shares presented before registration of capital increase are invalid, however, obligations subscription of share capital are valid. If there are bearer securities, board of management will distribute the share to the owners within three months.

Certificate can be published until the share certificate attained. The provisions regarding share certificates are executed to the certificates too. If the ones who have little shares in the company request, written share certificate can be attained and disturbed.  The one, who attained share certificate before registration, will be responsible for the damage resulted from this action.

2-Taxation on share certificate or certificate: 

If stock certificate registered, the stock certificates having had more than 2 years will not be liable to tax, in the case of having those disposed. (Tax Law number 232)Consequently, stock certificate disposal will be considered as other certificates.

Incomes attained by Istanbul stock exchange cannot be included in the annual income tax declaration and income tax stoppage.

3- Taxation when share certificate or certificate does not exist:

To Whoever and whenever Corporation Company co-founder sells his shares, the gain resulted from this operation will be liable to tax. (Income Tax, Article number 80/4)

In the calculation of share gaining, share cost will be liable to indexing; exception will not be included in share gaining.

(Indexing system and calculation exist in taxation parts.)

4-  Temporary Certificate for Stock Companies

Since % 90 of the Stock Companies in Turkey are the family companies, according to the provisions of Turkish Trade Law, they operate without having  share certificates or other certificates, however, according to the income tax law,  the acquirement from selling shares will be liable to tax.

5- Is temporary certificate substitute for stock certificate?

In corporate companies, temporary certificate; whether it is written to bearer or to the actual person, is substituted for stock certificate.

Since Temporary certificates are substituted for stock certificates, they include   right to share owning. However, eve though they are temporary, their validity is not temporary.

5- How are temporary certificates implemented?

Since Temporary certificates will be exchanged and substituted for stock certificates, they have to be implemented just like stock certificates in terms of form and scope. In which method, stock certificates will be implemented is defined in Turkish Trade Law. Because of the fact that certificates are exchanged for stock certificates, the date of gaining those certificates is the date of certificate gaining.

6- Is it mandatory to get permission in order to get temporary certificate.

It is not mandatory to get permission in order to get temporary certificate. It is possible for temporary certificates to be prepared on computers and duplicated.

7- Is income tax paid, in the case of selling temporary certificates?

In the case that temporary certificates are disposed, and in the case that temporary certificates are liable to tax, related provisions are executed.

After these specific days past, if these are disposed after two years, they will not liable to tax no matter how much is it.

According to the Income Tax Declaration serial number 232 of Ministry of Finance, in the taxation of temporary gains; the provisions of stock certificates will be executed, according to income tax law.

8- Which information has to be in temporary certificates?

Temporary Certificate

…Corporate

…ISTANBUL

Trade Register Number

Date of issuance

Serial Number

İtem Number
Total Rated Capital

Total Share Number

Value of Common Stock

Partner’s
Name Surname:
ID Number:
Residence Address
Number of Shares

Source: ISMMMO

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.