Current Legislative Developments - May 2023

Remote working in Technoparks. This rate has been increased to 100% for IT personnel

100% for IT personnel, and 75% for other personnel.

IT personnel:

* Graduates of four-year undergraduate departments related to computer science, electronics, or software in faculties

* Or graduates of higher education institutions abroad whose equivalency is accepted by the Council of Higher Education

* Those who are faculty, vocational school, and vocational high school graduates assigned in fields such as software, design (chip design, system design, hardware architecture design, etc.), analysis, network connections, or related testing and maintenance

It is beneficial to clarify with the Technopark management whether other personnel performing software development within the Technopark project, aside from those who are not computer, electronics, and software graduates, can also work remotely at a 100% rate

Valid as of April 1

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Additional incentives in investment contribution rates expired as of the end of 2022

Pursuant to Presidential Decree No. 1950 published in the Official Gazette dated 30/12/2019, the following additional incentives had been put into practice until the end of 31.12.2022

These additional incentives were going to be applicable for investment expenditures within the scope of the investment incentive certificate oriented towards the manufacturing industry (NACE Rev. 2 Code: 15-37) without requiring any procedure on the incentive certificate

* Within the scope of regional and strategic incentive practices, 15 percentage points will be added to the investment contribution rate applicable in the region each year regarding tax reduction support,

* Corporate income tax or personal income tax reduction will be at the rate of 100% in all regions

* The rate to be applied to the earnings derived by the investor from other activities during the investment period, corresponding to the investment contribution amount, will be 100%

The additional incentive will not apply to 2023 investment expenditures, and the rates stated on the certificate will apply.

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"Summary Foreign Exchange Position Report" postponed

The Systemic Risk Data Monitoring System (SRDMS) has been established within the body of the Central Bank of the Republic of Turkey (CBRT) and logins will be made to the address https://tcmbveri.gov.tr

* The reporting obligation of companies with a total cash and non-cash loan balance between 10 million TL and 50 million TL across all domestic banks has been postponed to January 2024

* For companies with a total cash and non-cash loan balance of 50 million TL and above across all domestic banks, the latest notification deadline for reporting regarding the months of March and April 2023 has been extended to June 30, 2023

* The report must be submitted by the last day of the tracking month

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Tübitak's "Investment-Based BiGG Program" (capital support in exchange for 3% shares)

Capital support of 450 Thousand TL, in exchange for a 3% share. The fund established by Tübitak will invest.

Investment will be made through the fund to eligible entrepreneurs (to be established as a Joint Stock Company - A.Ş.), and no additional evaluation or examination (due diligence) will be performed.

The 450 thousand TL capital will be deposited in a single installment

The company receiving the investment will submit a "Business Plan Progress Report" to TÜBİTAK once every 6 months.

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TAGEM R&D Support Program

The TAGEM R&D Support Program is a support program aiming to develop knowledge and technology for the priority needs of the ministry and the agricultural sector, and to transfer these developments to farmers and agricultural industrialists

The support limit and support rate vary depending on the type of institution/organization applying

Applicant

Upper Support Limit (TL)

Support Rate (Maximum)

Universities and TÜBİTAK R&D Units

300,000

100%

Civil Society, Professional, and Farmer Organizations

300,000

70%

Private Sector Organizations

3,000,000

70%

Application Deadline: June 16, 2023

Place of Application: General Directorate of Agricultural Researches and Policies (TAGEM)

Method of Application: Must be delivered by hand, via cargo, or postal mail to arrive no later than the application deadline. Submissions via e-mail, fax, and similar methods will not be accepted.

Application Address: Üniversiteler Mah. Dumlupınar Bulvarı, Eskişehir Yolu 10. Km 06800 Çankaya/ANKARA

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