New law package aims to boost trust in Turkey's (Istanbul)
A comprehensive draft law package to ameliorate the investment conditions in Turkey is launched to address major issues, such as reducing firm establishment costs, improving working conditions for foreigners and employing refugees more easily
Deputy Prime Minister Nurettin Canikli said a draft legislation package to improve the investment environment has been offered to the cabinet of ministers, and the package will include comprehensive regulations on many issues, including problems facing foreign direct investors in Turkey. While the Cabinet meeting continued, Canikli held a press conference to disclose some of the new regulations regarding taxes that will be made to improve the investment climate. Regulations on stamp duty and firm establishments will be made to reduce transaction costs for investors and stamp taxes will be applied to just one copy of contracts. Furthermore, investors will be exempted from real estate taxes with the objective of encouraging investment in lands.
Buildings to be constructed as part of investment, as well as incentive certificates, will be exempted from fees and real estate taxes for five years. New regulations will bring Protected content discount on expenditures on research and development (R&D) activities and the revenues of trading corporations. In cases which public procurements are cancelled, the stamp duty paid on procurements will be returned.
52-year-old practices coming to an end
The draft law package regarding the improvement of the investment environment will be proposed to Parliament in the upcoming days. Canikli said the new laws can be described as a "reform," and will end 52-year-old practices, adding that they include regulations on taxes, commercial laws and the labor and social security ministry.
Company establishing costs to be reduced
Canikli stated that the costs to establish a company will be reduced and unnecessary bureaucratic formalities will be completely eliminated in order to bring facility to company establishment procedures. The regulation aims to ensure companies can be established quickly and less expensively. Incentives provided for R&D activities will be increased and some incentives will be offered to regional management centers, created for international companies to manage their operations in countries other than Turkey. Wages paid to employees working at regional management centers will be exempted from taxes. New regulations will be made to remove all obstacles to the spread of interest-free finance products to accelerate capital flow from Islamic countries and introduce their financing opportunities to Turkey.
Improving working conditions for foreigners
Regarding steps to be taken to improve working conditions in Turkey for foreigners, Canikli said that regulations that will provide flexibility will be put into effect. Canikli noted that the international work permits, which used to be given by different ministries, will be coordinated and conducted by the Labor and Social Security Ministry alone. Canikli added that qualified foreigners will be provided with a Turquoise Card, allowing them to work indefinitely.
Easing conditions for Syrian refugees to enter the labor market
Canikli announced that necessary regulations will be made to allow employment of refugees, in particular Syrian refugees, in sectors where the Turkish labor market is inadequate, adding that new regulations will facilitate work permits for Syrian refugees.
Canikli noted that new measures will be taken to cancel the work permits of those who threaten public security and order, aside from those who are banned from entering Turkey.