The incentives apply to local and foreign real or legal entities.
Those who want to benefit from any of the incentives must apply to State Planning Organization to obtain an Incentive Certificate.
Incentives are:
The Ministry can rent or lease land and buildings that are allocated or will be allocated to it.
Materials needed for the tourist properties can be exempted from Customs Duty with the permit of the Ministry.
Net income from investments, the project of which are approved and are build after 30.6.1987, is exempt from income and corporation tax for a period of ten years commencing from the date at which the investment was documented and business commenced.
In cases where the bed capacity of existing buildings are increased , the net profit derived from the additional capacity is also exempt from taxation for ten years.
Expenditure to increase the star quality, building of a swimming pool, sport facility or similar building can be written off in two years accelerated depreciation starting from the end of such expenditure.
Those obtaining tax exemption in TRNC obtains tax exemption cannot carry forward any losses accumulated in the exemption period.
If a public company registered in TRNC obtains tax exemption the period of exemption is increased to thirteen years.
New operators of such tourist properties can deduct from their net profits 20% of Turkish Lira equivalent of foreign exchange new bring to TRNC and exchange them to TRNC and exchange them to Turkish Lira at the official rate of exchange.
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