The Ministry of Industry and Technology has made an arrangement meant to encourage investor companies that benefit from the project-based government stimulus package to allocate resources for R&D activities. In this context, the Presidential Decision for Making an Amendment on Granting Project-Based Government Support for such investments was published in the Official Gazette on June 28, 2020.
For investments covered by the support, if R&D spending of a minimum of 2% of net sales for three years following the completion of the investments has been documented by a certified public accountant, then the tax-deduction support will be calculated by adding 5 points to the contribution rate of the investment, provided that it does not exceed previously determined maximum rates.
Energy support
On the other hand, procedures concerning the implementation of energy support within the frame of the arrangement have been determined.
If requested by the company, energy support implementation will start after the validation of the report by at least two experts considering the on-site confirmation of partial commissioning of the investment, the dispatching of the investment expenditures report prepared by a certified financial advisor to the Ministry or the complete commissioning after receiving an investment completion visa.
Following the on-site confirmation of partial commissioning, energy support will be available based on the realized machinery and equipment expenditure in proportion to the nominal machinery and equipment amount projected in the investment incentive certificate.
Partial commissioning will be determined once a year maximum, and the amount of total energy support before receiving the investment completion visa will not exceed the 50% of the maximum energy support amount declared in the decision.
Online applications will be available
Additionally, investor companies will be able to apply for project-based supports online via Electronic Incentive Practices and Foreign Capital System (E-TUYS).
An arrangement has been prepared to ensure that investor companies, which want to take advantage of project-based supports, provide more detailed information about their investments. You may read the whole document from the link: https://www.resmigazete.gov.tr/eskiler/2020/06/20200628-18.pdf.
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