A Presidential Decision amending the Decision on Providing Project-Based State Aid for Investments was published in the Official Gazette.
New rules for the application process
The title of Article 4 of the decision was changed to “application period and documents required for applications.” The Ministry may invite one or more companies that will operate in an investment area it has designated by sending them a letter.
The Ministry may also issue a call by publishing an announcement on its official website or through its official accounts on digital platforms. The call or invitation letter may set special conditions for the investments.
Investors wishing to apply will be required to submit a feasibility report prepared by development and investment banks, along with a petition. These documents will not be required for investment applications evaluated under the Technology Initiative Program.
Minimum investment amounts set
For investments to be supported under the decision, the minimum fixed investment amount will be 100 million liras if they are intended to produce products on the priority products list and have been approved for support under the Technology Initiative Program.
For other investments, the minimum fixed investment amount or research and development expenditure was set at 2 billion liras.
Support and activity report requirements
Investment projects approved for support and deemed appropriate by the Ministry will be submitted to the President. The Ministry will issue an investment incentive certificate for projects deemed eligible for support by the President.
For five years after receiving investment completion certification, the investor will submit an activity report to the Ministry once a year, including the amounts of support from which it continues to benefit.
Except for investors who have not started their investments due to force majeure or extraordinary circumstances, investors will be required to document within three years from the effective date of the support decision that they have made expenditures of at least 200 million liras or 10 percent of the investment amount after the investment start date specified in the decision.
Energy and insurance premium support
At the investor’s request, the partial commissioning of the investment may be established on site by at least two experts appointed by the Ministry. Following this determination, investment completion certification may be issued, and energy support or support for the employer’s share of social security premiums may begin once the investment is fully commissioned.
The total energy support that may be received before investment completion certification may not exceed 50 percent of the maximum energy support amount set.
The Technology Initiative and large-scale investments
Investments covered by the Technology Initiative Program and supported under the decision may receive direct support from KOSGEB or TÜBİTAK.
For projects involving a completely new investment with a minimum fixed investment amount of 5 billion liras, the Ministry may sign contracts with investors or subsidiaries whose shares are wholly owned by investors.
The article concerning the preparation of activity reports entered into force effective from November 26, 2016. The other articles of the decision will apply as of the day it was published.
