Direct Invest Capital

Capital supports, are used for the financing of projects which are approved by the Ministry in Technology Development Zones, provided by income and corporate taxpayers are subject to a discount that does not exceed 10% of the declared income or profit of a company and 20% of the equity capital until 31/12/2023. The amount to be deducted cannot exceed 500,000 Turkish Liras per annum. The Council of Ministers is authorized to reduce the rates and monetary limits by half or increase the rates and monetary limits by four times. The taxes, does not be used for the projects which are financed by income and corporate taxpayers within two years, are not considered as accrued taxes and collected by adding interest for delay.

Direct Invest Capital can be used as below:

  • 1) It is obligated that the capital support, provided by income taxpayers and corporate taxpayers, must be used for being partner of the company in the establisment or after and must be provided with capital to the company.

  • 2) The amount that can be taken into consideration as a discount is limited to 10% of the remaining amount after deducting past year loses and all reductions and exceptions from the total amount of gains and revenues, are subject to declaration, are obtained in calendar year when provided capital support for real persons. The capital support provided by corporate taxpayers will not exceed 10% of the equity capital that is calculated by taking into account profits or lossesbefore tax, nonallowable charges, losses of previous periods and all deductions and exceptions.