|
Business Legislation
Turkey has a simple business legislation system which complies with international standards and offers an equal treatment for all investors. Recent amendments to the existing law will assist Turkey even further with the improvements it is currently making in its investment environment.
Turkey offers:
1. Legal framework of foreign direct investment
The aim of the Foreign Direct Investment (FDI) Law is:
• to to encourage FDIs in the country
• to protect foreign investors' rights
• to bring investors and investments in line with international standards
• to establish a notification-based rather than approval-based system for FDIs
• to increase the volume of FDI through established policies.
The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains the important principles of FDIs, such as freedom to invest, national treatment, expropriation and nationalization, transfers, access to real estate, dispute settlement, valuation of non-cash capital, employment of expatriates, and liaison offices.
The regulation on the implementation of the FDI Law consists of:
• Specifying the procedures and principles of the issues that are laid down in the FDI Law.
The target for the new FDI Law on work permits for foreigners is:
• to regulate the work carried out by foreigners
• to stipulate the rules on working permits given to foreigners.
2. Bilateral agreements
2.a. Bilateral agreements on the promotion and protection of investments
Since 1962, Turkey has developed an impressive network of bilateral agreements with 80 countries.The main purpose of these agreements is to promote investment flows between parties, to ensure a more stable investment environment, to provide economic and legal assurance to foreign investors, and to establish a favorable environment for economic cooperation.
Afghanistan, Albania, Algeria, Argentina, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium/Luxembourg, Bosnia and Herzegovina, Bulgaria, Chile, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Nigeria, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, South Korea, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, The Netherlands, The United Arab Emirates, The United Kingdom, The United States, Uzbekistan, Yemen.
2.b. Double taxation prevention treaties
Turkey has signed double taxation prevention treaties with 71 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.
Albania, Algeria, Azerbaijan, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Moldova, Mongolia, Montenegro, Morocco, Norway, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, The United Arab Emirates, The Netherlands, The United Kingdom, The United States, Uzbekistan.
Turkey is continuing to expand the area covered by the double taxation prevention treaty by adding more countries on an ongoing basis.
2.c. Social security agreements
Turkey has signed Social Security Agreements with 22 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI. Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Norway, Romania, Sweden, Switzerland, Turkish Republic of Northern Cyprus, The Netherlands, The United Kingdom.
3. Bilateral free trade agreements
Turkey has 12 Free Trade Agreements that enable it to create a tax-free environment in intra-trade on an agreed list of goods. This framework explains why many global companies are now using Turkey as a second supply source, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively cheaper but well-educated labor force, coupled with cost-effective transportation.
Albania, Bosnia and Herzegovina, Croatia, EFTA member countries (Iceland, Norway, Switzerland and Lichtenstein), Egypt, Georgia, Israel, Macedonia, Morocco, Palestine, Syria, Tunisia.
In order to attract investors, Turkey is carrying out negotiations aimed at including the Faroe Islands, member countries of the Gulf Cooperation Council, Jordan, and Lebanon in the existing network.
Source: Invest in Turkey
|
