The Turkish Council of Ministers positioned the nuclear project under the scope of the 5th region promotion in the status of “prioritized investment”.
According to the decision published in the official gazette, in addition to sectors such as sea transportation, railway investments, automotive, space or defense industry, tourism, fair, medicine, defense, aviation, space, mining, school and R&D (Research and development), now, nuclear power plant investments will also be covered as prioritized investments.
What does this mean for foreign companies?
Prioritized investments benefit from the incentives provided to the 5th region cities. (Adiyaman, Aksaray, Bayburt, Çankırı, Erzurum, Giresun, Gümüşhane, Kahramanmaraş, Kilis, Niüde, Ordu, Osmaniye, Sinop, Tokat, Tunceli, Yozgat). In this context, the investors take advantage of:
• VAT Exemption,
• Customs Tax Exemption,
• Support on Employers’ share of insurance premiums for 7 years,
• Investment Contribution Rate of 40% and Tax Reduction of 80%
• Interest Support up to TRY 700.000,
• Allocation of Investment Site.
President Erdogan announced last year that Akkuyu Nuclear Power Plant will be given a status of “strategic investment” after his meeting with President Vladimir Putin.
The Russians, waiting for the strategic incentive certificate for the Akkuyu project, can expect a gain of 3 billion US Dollars through the status.
In this case, Russians and other nuclear power plant investors in the country will be evaluated under “Prioritized Investor” instead of “Strategic Investor”, which is the highest support of the incentive system.
