Ministry approves incentives for Turkish company’s $376 mln investments

ISTANBUL

Turkish home appliance producer Arçelik has said the Economy Ministry’s Directorate of Incentive Implementation and Foreign Investment approved incentives for its planned investments worth 1.14 billion Turkish Liras ($376 million on Jan. 14 parity), in a written statement to the Public Disclosure Platform (KAP) on Jan. 14.

These investments will be used for modernization works for the company’s seven production plants during the next four years, according to the statement.

Out of the approved incentive certificates, four certificates for an amount of 656.4 million liras were for large-scale investments eligible for Second Region Incentives.

In this respect, the investments for the next four years up to the sum mentioned above shall be eligible to customs duty exemption, value added tax (VAT) exemption, a two-year social security premium support for employer’s share and a 55 percent corporate tax deduction.

Out of the approved incentive certificates, one certificate for investments in the amount of 225.8 million liras will be a large-scale investment which is eligible for First Region Incentives, the statement added.

Accordingly, the investments will be eligible to customs duty exemption, VAT exemption, two-year social security premium support for the employer’s share and a 50 percent corporate tax deduction.

A certificate amongst approved incentives for investments of an amount of 138.9 million liras will be a large-scale investment, which is eligible for Third Region Incentives.

In this respect, these will be eligible to customs duty exemption, VAT exemption, five-year social security premium support for the employer’s share and a 60 percent corporate tax deduction.

Additionally, a certificate for an investment amount of 114.6 million lira will be considered as a priority investment, which is eligible for Fifth Region Incentives, said the statement.

“In this respect, our investments for the next four years up to the sum mentioned above shall be eligible to customs duty exemption, VAT exemption, seven-year social security premium support for the employer’s share and a 80 percent corporate tax deduction,” added the statement.