Finance minister: Three new tax regulations on way

DAILY SABAH
ISTANBUL
Published 30.08.2016 01:06

According to Finance Minister Naci Ağbal, with the aim of protecting and incentivizing businesses, the government has been working on three important tax regulations, among which is one that will ensure a merger of two firms operating in the same sector are exempted from corporate taxes.

Speaking to Habertürk daily, Ağbal said in basic terms they will incentivize firms conducting businesses in the same sector to come together and grow their business through a merger on condition that the newly formed firm is expanded to make operations more efficient.

Ağbal also announced that a second tax regulation is on the way, which will involve stamp taxes, which are considered a huge burden on production and investments.

According to the new regulation that is in the process of being prepared, no stamp taxes will be implemented for projects that concern research and development (R&D), innovation and public-private partnership (PPP).

Regarding the third tax regulation on the agenda, Ağbal said no taxes will be taken from leveraged foreign currency trading made solely with the purpose of protecting businesses from market risks.

Meanwhile, in line with Ağbal's remarks, Prime Minister Binali Yıldırım announced at the beginning of July that the government is set to boost the confidence of both international and domestic investors as well as focus on solving the problems faced by businesses hit hard by terrorism through an economic incentive package. The package lowers the tax burden for companies, provides new incentives for businesses, offers debt forgiveness to firms affected by terrorism and eases the employment process for foreigners. Yıldırım said all grants, incentives and the implementation of the regulations will not be a burden on the fiscal budget compared to the high returns expected on the creation of new jobs that will boost the overall economy, increasing production and revenue in Turkey.

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