Turkish ministerial announcement on reforms to stimulate and support investors

On Monday, Prime Minister Ben Ali Yildirim announced a new reform package aimed at stimulating and supporting investors in Turkey. According to the reform package, the stamp tax has been reduced, and facilities have been provided for investors wishing to invest in technical and technological fields, in addition to facilities for the relatives of martyrs. The reform package also offers facilities for those wishing to open companies, shops, and workplaces. Mr. Yildirim stated that the beneficiaries of these reforms are investors interested in establishing business and industrial projects in the country, which will provide new job opportunities for citizens, and thus citizens will directly benefit from these reforms. Millions of citizens working in the agricultural sector, as well as workers, retirees, and youth, will also benefit from this reform package. Yildirim added: What are the reforms that will be implemented?

First: Reduction of stamp tax:

There is a tax known as stamp tax in institutions and companies. We are making serious amendments and reforms in this area. For example, when a certain contract is made, ten copies of this contract may be requested, and stamp tax is paid for each copy separately. We have reduced this tax, and it will now be collected for only one copy.

Second: Removal of stamp tax on technical and technological investments:

The stamp tax will be completely removed from contracts made between investors in the technical and technological sectors. Anyone investing in the technical and technological sectors will not pay stamp tax on contracts made with suppliers. We are also removing the stamp tax on the participation of investors, businessmen, and companies in exhibitions outside Turkey.

Third: Exemption of international companies from corporate tax:

Suppose there is a large international company that wants to make Turkey its administrative or regional headquarters. If the company makes such a decision, we will exempt it from corporate tax. By managing from Turkey, it will employ many staff and contribute to enhancing their experience.

Fourth: Encouraging agricultural investments:

As part of encouraging agricultural investments, lands will be exempted from property tax, and buildings will also be exempted from property tax for five years.

Fifth: Facilitating the transfer of funds from abroad:

If some Turkish investors or foreign investors have funds outside Turkey and wish to bring them to Turkey for investment, they can do so easily and without any questioning, provided that these funds are not from terrorist sources or smuggled money. Thus, investors can bring their capital to Turkey without obstacles or concerns and can operate and invest it better and more safely.

Sixth: The turquoise card system:

Among our promises is the implementation of the turquoise card system. The aim of this system is to reverse the brain drain and bring back highly qualified Turkish talents and professionals who are settled abroad and have achievements in science, arts, and economics. We are working to encourage them to return to Turkey through this system. In addition, foreign talents and professionals will be granted the same privileges. We say to them: "Come, settle in Turkey, work, produce, and turn your ideas into benefits, and we will provide you with all necessary facilities." We will also grant special passports to exporters and those who contribute to bringing foreign currency into the country.

Mr. Yildirim also mentioned many reforms such as limiting foreign trade transactions to the Ministry of Trade and Customs to facilitate commercial operations, facilitating the establishment and closure of companies, removing special consumption tax on taxi repairs, removing special consumption tax on car purchases for the relatives of martyrs, making it easier to borrow from banks and improving their terms, and many other important reforms that will contribute to increasing investments in the country and revitalizing economic life.