“IRAN-TURKEY TRADE _ INVESTMENT OPPORTUNITIES” SEMINAR “IRAN by xumiaomaio

VIEWS: 4 PAGES: 54

									           “IRAN-TURKEY
TRADE & INVESTMENT OPPORTUNITIES”
              SEMINAR


    Embassy of the Republic of Turkey
         Office of the Commercial Counsellor

     Ferdowsi St. No:337 Tehran - Tel: 3391 3592 Fax: 3392 4952
PRESENTATION OUTLINE

I.       TURKISH ECONOMY
II.      TURKISH ECONOMY - FOREIGN TRADE
III.     TURKISH ECONOMY – FOREIGN DIRECT INVESTMENTS (FDI)
IV.      INCENTIVES AND FINANCING
V.       BUSINESS REGULATIONS AND REQUIREMENTS
VI.      INTEGRATION TO GLOBAL ECONOMY
VII. BUSINESS REGULATIONS AND REQUIREMENTS continued
VIII. ESTABLISHING A BUSINESS IN TURKEY
IX.      COST OF DOING BUSINESS IN TURKEY
X.       TAX REGIME IN TURKEY
XI.      SPECIAL INVESTMENT ZONES IN TURKEY
XII. SOME USEFUL LINKS AND ADDRESSES
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                                TURKISH ECONOMY

TURKEY IN BRIEF
• Covers about 783.562 square kilometres
• Composed of 7 geographical regions
• 8000 km. of coastline
• Domestic currency is “TL-Turkish Lira” effective from 1 January 2009
• Population 72 million people ,%75 living in cities,%1,31 population growth rate
• Estimated population 80-85 million people in 20 years time
• Most populated cities: Istanbul (12.6 mil.), Ankara (4.5 mil.), İzmir (3.6 mil)




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                    TURKISH ECONOMY




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                   TURKISH ECONOMY




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                  TURKISH ECONOMY




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                   TURKISH ECONOMY




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                  TURKISH ECONOMY




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                      TURKISH ECONOMY

LABOR FORCE




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                   TURKISH ECONOMY




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                   TURKISH ECONOMY




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           TURKISH ECONOMY – FOREIGN TRADE




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           TURKISH ECONOMY – FOREIGN TRADE




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           TURKISH ECONOMY – FOREIGN TRADE




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              TURKISH ECONOMY – FOREIGN TRADE

MAJOR TRADE PARTNERS    (billion $)




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              TURKISH ECONOMY – FOREIGN TRADE

MAIN EXPORT & IMPORT ITEMS     (billion $)




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           TURKISH ECONOMY – FOREIGN TRADE




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             TURKISH ECONOMY – FOREIGN DIRECT INVESTMENTS

FOREIGN DIRECT INVESTMENT (FDI)                 SOME FACTS…
INFLOWS
                                                • Last year, Turkey was 23rd in the
Foreign Investors find Turkey attractive for    world and 9th among emerging markets
number of reasons;                              in attracting FDI (UNCTAD data)
                                                • Turkey ranked 59th out of 181
• Liberal policy towards all forms of foreign   countries in Ease of Doing Business
investment                                      Rank of the World Bank
• Large and growing market                      • 41st out of 121 economies in Forbes
• Geographical location, between Asia and       Doing Business Index
Europe                                          • 15th most attractive economy for FDI
• Relatively cheap and abundant labor force     in UNCTAD’s World Investment
• Customs Union with EU                         Prospects Survey 2008-2010
• Free Trade Agreements with EFTA and 11        • Turkey, World’s 15th biggest
countries (others planned)                      economy
• Privitization projects under progress         • Turkey, Europe’s 6th biggest economy
                                                • Turkey attracted more than 50 billion
                                                $ in the last 3 years



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     TURKISH ECONOMY – FOREIGN DIRECT INVESTMENTS




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        TURKISH ECONOMY – FOREIGN DIRECT INVESTMENTS

Breakdown of Companies with International Capital by Year According to
                    the Mode of Establishment




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         TURKISH ECONOMY – FOREIGN DIRECT INVESTMENTS

     FDI INFLOWS BY SECTORS                FDI INFLOWS BY YEARS




                                     More than 50 billion $ in the last 3 years



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                INCENTIVES AND FINANCING




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                    INCENTIVES AND FINANCING

SOME OF THE INCENTIVES BRIEFLY EXPLAINED




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                INCENTIVES AND FINANCING




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                        FINANCING




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                     BUSINESS REGULATIONS & REQUIREMENTS

FOREIGN INVESTMENT RULES

• New Foreign Direct Investment (FDI) Law launched on 17 June 2003
• Encourages real persons and legal entities resident abroad to invest in Turkey, to
engage in commercial activities, to participate in partnerships, to purchase shares, to
open branch offices, to establish liasion offices
• All transactions for establishing a company with foreign capital is the same with local
• National Treatment Principle: Foreign & local investors have the same rights
• No additional approvals for establishment of a foreign company, branches and
participating to an existing company ( Only liaison offices are subject to the approval of
the Undersecretariat of Treasury)
• Bringing minimum capital no longer required (only the amounts required by the
Commercial Code such as 5000TL for limited liability company and 50.000TL for joint
stock company)
• Foreign capital companies have the same rights to own and use land as domestic
companies, however reciprocity principle valid for foreign individuals




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                     BUSINESS REGULATIONS & REQUIREMENTS

GENERAL PRINCIPLES OF “FDI” UNDER NEW “FDI” LAW

1. Purpose and Scope of FDI Law
2. Freedom to Invest and National Treatment
3. Expropriation and Nationalization
4. Transfers Abroad
5. Acquisiton of Immovable Property
6. Settlement of Disputes
7. Assessment of Capital in-kind to be Contributed by Foreign Investors
8. Empolyment of Foreign Personnel
9. Liaison Offices




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                    BUSINESS REGULATIONS & REQUIREMENTS

FOREIGN TRADE

Customs Union in 1996 with EU: Import and export regimes have been made consistent
with the regulations of the EU

Regulation of foreign trade by Undersecretariat for Foreign Trade

Implemantation of foreign trade by Undersecretariat for Customs

Turkish Customs Tariff: Customs duties are levied at the time of importation on the
customs duty base on the customs valuation principles and according to the Customs
Tariff Position Numbers

Customs Duty Base: Determined in accordance with the principles of Agreement on
Implementation of Article VII of the GATT




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                  BUSINESS REGULATIONS & REQUIREMENTS

IMPORT REGIME

Imports can be classified in 3 groups:

•    Imports which are subject to permission: Permission may be required from different
     authorities, Ministries. Some goods can only be imported by authorized institutions
     like weapons, money paper etc.
•    Imports which are prohibited
•    Goods which can be freely imported: Most goods can be freely imported subject to
     the payment of customs duties and certain funds if any. With the exception of imports
     subject to permission, all imports may be realized through the intermediation of any
     bank authorized to operate a foreign exchange position

Import documentation is in line with EU rules, original copy of invoice must
   accompany the goods, import permissions to be presented to the Customs at
   clearence, all the documents must be kept for 5 years for control purposes

Import Duties: As a result of the Customs Union, Turkey eliminated all customs duties
   applied to imports of industrial products from the EU and started to apply EU
   Common Customs Tariff for imports from the third countries
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                 BUSINESS REGULATIONS & REQUIREMENTS

IMPORT REGIME

Conditions Required to Qualify as “Importer”

Every natural or legal person that has tax registration number can qualify as an importer

In addition, according to the Customs legislation; importers must also submit:

• Information file that includes registration certificate from the Chamber of Commerce or
Industry
• Copy of the Trade Registry Gazette
•List of authorized signatures and power of attorney to the related Customs
Administration




  30         “IRAN-TURKEY TRADE & INVESTMENT OPPORTUNITIES” SEMINAR
                 BUSINESS REGULATIONS & REQUIREMENTS

EXPORT REGIME

•Export procedures have been relaxed to increase Turkey’ export volume
•All goods can be freely exported, except for those subject to licence by the
Undersecretariat for Foreign Trade such as rice, oilseeds, vegetable oils, animal feed,
fertilizers, live animals
•Certain goods require the approval of other Ministries, and there are few items whose
export is forbidden

Conditions Required to Qualify as “Exporter”
Every legal person, natural person or Joint-venture that has a tax registration number and
is a member of related exporters’ association can be an exporter.

In addition, according to the Customs legislation; importers must also submit:

• Information file that includes registration certificate from the Chamber of Commerce or
Industry
• Copy of the Trade Registry Gazette
• List of authorized signatures and power of attorney to the related Customs
Administration
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                     INTEGRATION TO GLOBAL ECONOMY

BILATERAL AGREEMENTS

Bilateral Agreements on the Promotion and Protection of Investments

•Since 1962, Turkey has developed an impressive network of bilateral agreements with
80 countries including Iran
•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

Double Taxation Prevention Treaties

• Turkey has signed double taxation prevention treaties with 71 countries including Iran
• These treaties enable tax paid in one of two countries to be offset against tax payable in
the other preventing double taxation




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                     INTEGRATION TO GLOBAL ECONOMY

BILATERAL AGREEMENTS

Social Security Agreements

Turkey has signed social security agreements with 22 countries making it easier for
expatriates to move between countries

Bilateral Free Trade Agreements

• Turkey has 12 Free Trade Agreements that enables it to create a tax-free environment in
intra-trade on agreed list of goods
• FTAs with Albania, Bosnia and Herzegovina, Croatia, EFTA countries namely Iceland-
Norway-Switzerland-Lichtenstein, Egypt, Georgia, Israel, Macedonia, Morocco,
Palestine, Syria, Tunisia
• FTAs provides global companies to use Turkey as a second supply source, not only for
EU and local Turkish market 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



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                   INTEGRATION TO GLOBAL ECONOMY

INTERNATIONAL RELATIONS

Turkey is an active member of regional and international organizations such as:

• United Nations (UN)
• The North Atlantic Treaty Organization (NATO)
• Organization for Economic Cooperation and Development (OECD)
•World Trade Organization (WTO)
• Economic Cooperation Organization (ECO)
• Organization for the Islamic Conference (OIC)
• Black Sea Economic Cooperation (BSEC)
• International Bank of Reconstruction and Development (IBRD)
• International Monetary Fund (IMF)
• G20 Developing Nations
• Asian Development Bank

Europian Union (EU) Customs Union since 1996
Europian Union (EU) accession country since 2005



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                 BUSINESS REGULATIONS & REQUIREMENTS

EMPLOYMENT OF FOREIGN INDIVIDUALS

• In Turkey, all foreign nationals to be employed by resident companies need to obtain a
work permit to be issued by Ministry of Labor and Social Security
• Besides the work permit, a working visa and residence permit has to be obtained
from the Ministry of Internal Affairs in order to work and reside in Turkey
• Work permits are given to technical and administrative personnel provided that the
applicants have sufficient technical and administrative skills for the positions
•Work permits can also be issued to foreign represantatives of branch offices to carry out
the establishment prosedures of branch
•The application for work permit should be made prior to the arrival of the foreign
employee in Turkey
•The processing of an work permit application may take a few months, thus it is
advisable to apply a few months before the employment of the foreign personnel
• After receiving the work permit, the foreign individual is required to apply to the
Turkish Cosulate in home country to obtain a working visa within at most 30 days from
the date of obtaining the work permit.
• After receiving the work permit and working visa, foreign national has to apply himself
or herself for a residence permit together with the work permit and working visa within
30 days from the date of entry into Turkey to the Ministry of Internal Affairs
  35         “IRAN-TURKEY TRADE & INVESTMENT OPPORTUNITIES” SEMINAR
           BUSINESS REGULATIONS & REQUIREMENTS

EMPLOYMENT OF FOREIGN INDIVIDUALS

            NEEDED DOCUMENTS FOR WORK PERMIT




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                ESTABLISHING A BUSINESS IN TURKEY

CHOICE OF BUSINESS ENTITY                 GUIDELINES




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               ESTABLISHING A BUSINESS IN TURKEY

REGISTRATION AND LICENSING




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            ESTABLISHING A BUSINESS IN TURKEY




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            ESTABLISHING A BUSINESS IN TURKEY

       BRANCHES                       LIAISON OFFICES




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                 COST OF DOING BUSINESS IN TURKEY

     MINIMUM MONTHLY WAGE                COST OF ELECTRICITY




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                COST OF DOING BUSINESS IN TURKEY

INDUSTRIAL ELECTRICITY PRICES IN TURKEY & EU




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            COST OF DOING BUSINESS IN TURKEY


     COST OF WATER                     COST OF NATURAL GAS




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                       TAX REGIME IN TURKEY

THE TURKISH TAX REGIME CAN BE CLASSIFIED UNDER 3 MAIN HEADINGS:

I. INCOME TAXES



a) CORPORATE INCOME TAXES




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                       TAX REGIME IN TURKEY



b) INDIVIDUAL INCOME TAXES




c) SOCIAL SECURITY




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                                   TAX REGIME IN TURKEY

II. TAXES ON EXPENDITURE




III. TAXES ON WEALTH
• There are 3 kinds of taxes on wealth : inheritance and gift taxes, property taxes and motor vehicle
tax
• Buildings and land owned in Turkey are subject to real estate tax at the following rates:
  Residences 0,1% and other buildings 0.2%
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                   TAX REGIME IN TURKEY




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                   TAX REGIME IN TURKEY




48   “IRAN-TURKEY TRADE & INVESTMENT OPPORTUNITIES” SEMINAR
           SPECIAL INVESTMENT ZONES IN TURKEY




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           SPECIAL INVESTMENT ZONES IN TURKEY




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           SPECIAL INVESTMENT ZONES IN TURKEY




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           SPECIAL INVESTMENT ZONES IN TURKEY




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SOME USEFUL LINKS AND ADDRESSES




 53      “IRAN-TURKEY TRADE & INVESTMENT OPPORTUNITIES” SEMINAR
“THANK YOU FOR YOUR ATTENTION”




  Embassy of the Republic of Turkey
       Office of the Commercial Counsellor

   Ferdowsi St. No:337 Tehran - Tel: 3391 3592 Fax: 3392 4952

								
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