Turkey has published Presidential Decision No. 4191 of 28 June 2021 in the Official Gazette, which amends certain aspects of the investment incentives regime. The amendments include:

• Increases in the minimum fixed investment amounts to qualify for incentives:
  • an increase from TRY 1 million to TRY 3 million for investments in regions 1 and 2; and
  • an increase from TRY 500,000 to TRY 1.5 million for investment in regions 3, 4, 5, and 6;
• Increases in the limit for the total amount of machinery and equipment subject to financial leasing, for each financial leasing company:
  • an increase from TRY 500,000 to TRY 750,000 in regions 1, 2, 3, and 4; and
  • an increase from TRY 300,000 to TRY 500,000 in regions 5 and 6;
• A reduction in the ratio of intangible assets (brand, license, know-how, etc.) accepted as investment expenditure from 50% to 25% of total fixed investment amount registered in the incentive certificate;
• The amendment of certain provisions for strategic investments, including:
  • changes in the exemption from certain conditions for strategic investment to provide that the minimum import condition (USD 50 million in the previous year) and the condition that domestic production capacity is less than imports, does not apply for investments in approved defense industry projects; and
  • changes in the provision that other investment projects may be approved when related to the production of products in the Priority Projects List, so that this also covers services;
• The amendment of certain provisions regarding interest or dividend support, including that the amount of interest or dividend support cannot exceed TRY 75 million (up from 50 million), provided that it does not exceed 20% of the fixed investment amount in strategic investments supported within the scope of the Technology-Oriented Industry Initiative, and does not exceed 10% (up from 5%) of the fixed investment amount in other strategic investments;
• An extension of the additional time allowed for the completion of investments issued incentive certificates before 11 March 2020 in the case of natural or biological disasters such as earthquakes or epidemics, which is extended from one additional year to two additional years.

Presidential Decision No. 4191 is generally effective from 29 June 2021.