G/SCM/Q2/TUR/27  
 
27 March 2013  
(13-1668)  Page: 1/2  
Committee on Subsidies and Countervailing Measures Original: English  
 
 SUBSIDIES 
REPLIES TO QUESTIONS FROM THE EUROPEAN UNION1 REGARDING THE 
NEW AND FULL NOTIFICATION OF TURKEY2 
 The following communication, dated 25 March 2013, is being circulated at the request of the Delegation of Turkey.  
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 Question 1  
Please provide explicitly the duration  of Exemption from Customs Duties. 
 Reply 
 The “customs duties exemption” investment enco uragement tool, aimed at exemption of Customs 
Duties of the actual investment related machinery and equipment has been an ongoing tool, for 
investment encouragement ever since the beginning of the Investment Encouragement Programs. 
As a tool it shall be used in the future adapting IEP’s, within programs aimed at development/investment encouragement.  
Question 2 
 Please provide explicitly the durati on of Value Added Tax Exemption. 
 
Reply 
 
Just as the “Customs Duty Exemption” tool, the VAT Exemption tool used within the IEP’s are 
aimed only at investment related machinery and eq uipment, and it shall be used in the future 
adaptive development/investment encouragement programs where necessary.  
Question 3 
 Please provide explicitly the duration of the encouragement measure of Tax Reduction. 
 
Reply 
 
The measure of “Tax Reduction”, is used under IE P’s, the measure/s can be eliminated in certain 
regions and/or it can be used as a measure in underdeveloped regions, or it can be used for major investments, whether they be SME’s or Large Scale Investments. The decisions can be made according to studies which follow changes in th e economy, changes in development levels of 
regions and investment needs of the country and its related regions.  
 Question 4 
 
Please provide details on the conditions, pr ocedures and duration of the measure of 
Land Allocations. 
 
                                               
1 G/SCM/Q2/TUR/26.   
2 G/SCM/N/220/TUR. G/SCM/Q2/TUR/27 
 
- 2 - 
 
  Reply 
 
Land allocation support measure began to be im plemented within the Decree on State Incentives 
for Investments, No: 2009/15199 which was published in the Official Gazette No: 27290 dated 
16 July 2009. 
 The support measure is implemented by the General Directorate of National Estate of the Ministry 
of Finance and the legal basis is the Law on The Ev aluation of Properties Belonging to the Treasury 
No: 4706, Law on Amendment to the Value Added Tax Law and the Procedures and Principles of 
the Allocation of State Real Estates which were published in the Official Gazette No: 27338, dated 
3 September 2009. 
 
The real estates belonging to the Treasury, special budget administrations, special provincial administrations, municipalities and the estates under the conservation of the State may be 
allocated to the investments and can benefit from the support measures that meet the 
requirements.  
In the end of easement or permission term, the buildings and facilities other than the machinery, 
equipment and fixtures shall be transferred to th e administration, moreover, upon the request of 
the investor the easement shall directly be established or the right of usage shall be given in accordance with the general provisions. 
 
Question 5  
Please specify the eligible beneficiaries an d the sectors of economy supported, as the 
current wording is not specific enough . 
 
Reply 
 
Eligible beneficiaries are all investors, whether they be domestic or foreign investors, who are to 
invest in Turkey.   
In general all sectors of investment are open for encouragement within the IEP system, in 
accordance with the legislation set forth as explained in the notification.   
The tables which show the sectors and limits, which have been given as a list show the 
investments which are not encouraged within the system and can be adapted depending on the development and investment needs of the econ omy and regions of the Country. Albeit the 
investment encouragement system is set up in a ccordance with regional and developmental needs. 
 
Real persons, ordinary partnerships, corporatio ns, cooperatives, unions, joint ventures, public 
institutions and organizations, professional orga nizations with the status of a public entity, 
associations and endowments and the braches of foreign companies established in Turkey can 
apply for an Investment Encouragement Certificate. Both domestic and foreign investors can benefit from the measures under equal terms and conditions and the measures offered under the 
Program are not directly related to trade. 
 By taking into consideration the international commitments and regional and sectoral restrictions determined in the Decree, investment activities related to the production of goods and services, 
research and development (R&D) and environmental protection can benefit from the 
encouragement measures provided by the Decree.   
All investors, who have prepared their investment feasibility studies and proposals, apply to the 
the Ministry of Economy with the related document s and after the evaluation, by the Ministry on 
the basis of macro-economic programs, supply vs. demand conditions and sectoral, financial and 
technical terms, eligible investment projects in  conformity with the Decree and Communiqué are 
granted an Investment Encouragement Certificate which enables them to benefit from the encouragement measures listed on it.   
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