Business Angel is the person who funds the entrepreneurial company by investing in the initial business model of the venture company and sharing the knowledge and experience of the entrepreneur with the entrepreneurial firm that he has for commercialization of the business idea. In Turkey, Regulation on Individual Capital Infusion (ICI) of Prime Ministry Undersecretariat of Treasury was issued on February 15, 2013 in order to eliminate the angel investment related deficit.
This regulation allows 75% deduction from the annual tax base for the capital invested by angel investors who receive license from Turkish Treasury, which will be in force until 2017. The maximum annual deductable amount is 1 million Turkish Liras.
Deduction ratio will be applied as 100% for those angel investors investing into the companies whose projects are supported by Ministry of Science, Industry and Technology and The Scientific and Technological Research Council of Turkey and Small and Medium Enterprises Development Organization in the last 5 years.
In order to get a deduction from their taxable income, investors have to meet
the following conditions;
The requirements of the Angel Investment law and regulations,
Acquired stocks to be held at least 2 years,
Capital gains as a result of sale of shares are exempted from income tax.
To get more detailed information about this program