Decision of the Council of Ministers on State Aid to Investments dated 15.06.2012 and numbered 2012/3305 ("Decision") provides an investment incentives scheme for general, regional, prioritised, large-scale and strategic investments. Accordingly, depending on the type of and the region where the particular investment made, investors can benefit from the following incentives; exemption from customs and value added tax ("VAT"), VAT returns, income tax withholding support, Social Security Premium Support, interest support, and land allocation.
According to the Decision, investors seeking to enjoy the incentive investment scheme available under the Decision shall first apply to the Ministry of Economy ("Ministry") so as to be provided with an Investment Incentive Document ("IID"). Following the application, an IID will be drawn up by the General Directorate of Incentive Implementation and Foreign Investment for the projects which are accepted. The Decision foresees that investment costs made before the application cannot be considered within the context of IID. Communiqué regarding the Implementation of the Decision of Council of Ministers on State Aid to Investments ("Communiqué") further enumerates the types of investment costs which are not considered within the scope of IID.
On 25.06.2016, the Ministry published an Amending Communiqué which introduced certain amendments to the Communiqué. Within the context of the amendments dated 25.06.2016, imported solar panels are now specified as the investment costs which are not considered as part of IID. Thereupon, on 27.08.2016, another Amending Communiqué has been published and provided certain investors with an exemption from the above change. Accordingly; provided that an application is made by the below investors until 27.09.2016;
- Generators based on solar power who obtained a pre-license or a generation license from the Energy Market Regulatory Authority before the date of 25.06.2016, and
- Investors provided with a way-bill for the imported solar panels which have been loaded before the date of 25.06.2016.
May be allowed to include the costs of imported solar powers within the ambit of IID.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.