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Turkey Publishes Law to Support the Development of Industry and Production — Orbitax Tax News & Alerts

On 1 July 2017, Turkey published Law No. 7033 on the Amendment of Certain Laws and Decrees to Support the Development of Industry and Production. Changes in the law include:

  • New registration requirements for industrial enterprises with the Ministry of Science, Industry and Technology, including pre-registration prior to commencing operations;
  • Higher education institutions are allowed to establish a business association with the public and private sector in relation to R & D and innovation;
  • New provisions regarding the establishment of Turkish organized industrial zones (OIZs) and other industrial and technology development zones;
  • Employment costs for R&D personnel employed in technology development zones placed in the budget of the Ministry of Science, Industry and Technology for a period of two years (limited to 10% of the total number of personnel);
  • Stamp duty and other transaction fee exemptions in relation to the allocation of land for organized industrial zones, free zones, industrial zones, technology development zones, and industrial estates, as well as real estate tax exemption for buildings located in such zones;
  • General tax exemption for organized industrial zones, as legal entities, for the purposes of the Law on Organized Industrial Zones; and
  • New penalties for related non-compliance.

The provisions of Law no. 7033 generally entered into force on the date it was published. Additional details will be published once available.