Government to provide tax breaks to entrepreneurs

ISTANBUL - Anatolia News Agency

Deputy Prime Minister Ali Babacan poses with winners of the ‘Turkey’s best entrepreneurs business models’ competition.

The Turkish government is now paying specific attention to supporting entrepreneurs via tax incentives, Deputy Vice President Ali Babacan said, speaking at the “Turkey’s best entrepreneur business models” awards ceremony, organized by the U.S. State Department and the Union of Chambers and Commodity Exchanges of Turkey (TOBB), on May 30.

“In this period when the global economic outlook is grim, it is very important to support and encourage our entrepreneurs,” Babacan said, adding that the way to do this is via educational training programs, internships and financing. He said Turkey is applying what he referred to as “individual participation capital,” and that a new era is about to begin.

‘Angel investors’

Investors who want to be “angel investors” will be able to write off 75 to 100 percent of this investment from their income taxes, once they receive the necessary accreditation and put capital into a new business, Babacan said. The 100 percent write-off will be applicable when the investment has a research and development component.

In addition, individual investors who hold onto their stocks for a two-year period will not be required to pay any taxes on the difference between the buying and selling prices, Babacan said.
This leads to a tax advantage both when the investor is buying the stock and also when the
investor decides to sell the stock, he said.