Turkey's national jet fighter TF-X project gets super incentive

Published 04.08.2018 00:00
Updated 04.08.2018 00:37

Under the project-based incentive system, government aid will be provided to the National Combat Aircraft Project production facility to be built in Ankara by Turkish Aerospace Industries (TAI). The presidential decree on the issue entered into force after being published in the Official Gazette.

Accordingly, the duration of this investment is estimated to be 15 years, starting from March 23, 2018. If the investment cannot be completed within this period, the Ministry of Industry and Technology will grant a time extension up to half of this period. The total fixed investment for the project is TL 5,650 billion ($1.1 billion). An additional 3,000 people will be employed as part of the project, while 300 qualified personnel will work for it.

The investment will have VAT exemption, customs tax exemption, VAT refund, a corporate tax cut, 10-year income tax withholding, qualified personnel support of a maximum of TL 660 million, interest support that can't exceed TL 440 million or profit share support. Moreover, an incentive up to 50 percent of energy consumption expenditures that can't exceed TL 350 million will be given and an investment place will be allocated.

Qualified personnel support will be implemented for five years on condition of not exceeding 20 times the monthly gross minimum wage for each qualified staff member. Interest support will be implemented for loan payments made as of the date on which redemption is sent to the Ministry of Industry and Technology. The ministry will cover up to 80 percent of interest or dividends paid in Turkish lira, foreign currency or foreign currency-indexed investment loans to be borrowed from one or more intermediary institutions.

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