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6/22/2020

Important Disclosures Made by Trade Minister Ruhsar Pekcan

“We have registered the free zone at Atatürk Airport as the first special expertise free trade zone and the field of expertise of the zone in question has been named as the IT (information technologies) - We will provide an interest rate and dividend support for a maximum period of 10 years to main investor companies that will establish these special expertise free trade zones not to exceed 50 percent of the fixed investment cost”…

Trade Minister Ruhsar Pekcan made important disclosures after the 15^th meeting of the Advisory Council of the Trade Ministry chaired by the Trade Minister participated by the presidents of prominent institutions of the real economy in Turkey such as the Union of Chambers & Commodity Exchanges of Turkey (TOBB), Turkish Exporters Assembly (TİM), Turkish Industry and Business Association (TÜSİAD) and the Turkish Contractors Association (TMB).

Pekcan stating that the meeting agenda is on global trade chains, said “The world is now seeking new addresses in global supply and value chains. Turkey comes up with a real potential at this point. It is a possibility that we can turn this into an opportunity for the country with accurate and decisive steps hopefully to be taken in cooperation. At this point, we have to implement correct strategies and focus on activities increasing our production and export levels.”

Pekcan commenting on special expertise free trade zones said that they are devising incentive mechanisms in relation with these zones enabling production with more added value aiming investments based on technology and an increase in exports accordingly. Pekcan mentioning the Presidential Decree published in the Official Gazette dated June 9, 2020, spoke as follows: “We will provide an interest rate and dividend support for a maximum period of 10 years to main investor companies that will establish these special expertise free trade zones not to exceed 50 percent of the fixed investment cost. Also, exemptions from corporate taxes, income taxes, customs duties and VAT will be provided besides supports such as rentals and qualified personnel.”

Pekcan stating that they have registered the free zone at Atatürk Airport as the first special expertise free trade zone and the field of expertise of the zone in question has been named as the IT (information technologies), said that special expertise free trade zones will be providing services with less bureaucracy and zones providing a single procedural point for investors.

About supports to be provided at Special Expertise Free Trade Zones

User parties having activities in said zones are foreseen to be supported as follows according to the Presidential Decree on Incentives to be Provided at Special Expertise Free Trade Zones published in the Official Gazette dated June 9, 2020:

• Granting of a maximum annual support of US$ 15,000 per capita in relation with gross wages of a maximum of 10 qualified personnel to be employed for activities in the said area and granting of a maximum annual support of US$ 75,000 regarding rental expenditures for land and buildings leased in the said zone;
• Granting of a support of 50 percent of interest payments for project loans up to US$ 10 million with a maximum maturity of 10 years secured under a single contract and not to exceed 50 percent of the fixed investment cost for assets stipulated for investment and dividends.

Criteria regarding the users to benefit from incentives will be determined by means of a circular to be published by the Trade Ministry. The opinion of the Ministry of Industry and Technology will be demanded in establishing the criteria regarding the R&D and high-tech content of activities in relation with the determination of beneficiaries.