Incentive

Incentives Based on the Information Sector

APPLICATION PROCEDURES AND PRINCIPLES OF THE COMMUNIQUE ON SUPPORT OF EXCHANGE EARNINGS SERVICE TRADE, 2012/4

 FIRST PART

Purpose,

Scope, Basis and Definitions

Aim


ARTICLE 1 –

 (1) This Decision, improving the international competitiveness of Turkey’s foreign currency earning services sector, increasing service revenues, opening up to foreign markets and for purposes of branding, Support of expenses related to their activities of resident companies and organizations in Turkey and Price Stabilization Fund (DFIF) aims to be met.


Coverage of Incentives Based on the Information Sector

ARTICLE 2 –

(1) This Circular provides for “entry to the market”, “promotion abroad”, “foreign unit”, “certification of the beneficiaries operating in the IT sector in order to increase the income of our country’s foreign currency earning service and to improve the international competitiveness of our country in the IT sector. “Trade delegation”, “procurement committee” and “consultancy” supports.

Abutment

ARTICLE 3 – (1) This Decision has been prepared on the basis of the “Export-Oriented State Aid Decision” put into effect with the Council of Ministers Decision No. 94/6401, dated 27/12/1994.

Definitions

ARTICLE 4 –

 (1) In this Circular;

1-a) Purchasing delegation: In order to increase our country’s foreign currency earning service income, to increase its share in existing markets, to find new markets; To hold bilateral business meetings, to visit professional organizations, to see the relevant facilities on site, to participate in business organizations, to make examinations in free zones, or to visit fairs, congresses, conferences, festivals or film markets organized in our country. the organization that enables them to

2-b) Turkish Ministry: Turkish Ministry of Trade,

3-c) The IT company: whom software is built in Turkey, the internet, computer games or microchip company operating in the area,

ç) Unit: Office, information center or liaison office opened abroad,

1-d) Head Office: Free Zones, General Directorate of Foreign Investments and Services,

2-f) Cooperation organization: Turkey Exporters Assembly (TIM); Turkey Union of Chambers and Commodity Exchanges (TOBB); Foreign Economic Relations Board (DEİK); Exporters Union; Chamber of Commerce and / or Industry; sector association, union, council or organization; businessman association, union or organization or technocity,

3-g) Participation cost: The cost of beneficiaries to pay for attending fairs, congresses or conferences abroad, consisting of rent, stand installation, decoration and insurance expenses,

ğ) Sectoral trade delegation: In order to increase our country’s foreign exchange-earning service revenues, to increase its share in existing markets, to find new markets in our country or to promote our country economically and commercially; Organizations aimed at enabling beneficiaries operating in the same sector and , or sub-sectors to make bilateral business meetings with companies, institutions or organizations located abroad and to see the related facilities on site,

h) Company: A company established in accordance with the provisions of the Code of Obligations or the Turkish Commercial Code,

ı) Notificationn: Communiqué No. 2012/4 on Supporting Foreign Exchange Earning Service Trade,

1) i)TechnoPark: The zone established and operating under the Law No. 4691 on Technology Development Zones or the company operating this zone,

2-j) Trade delegation: Sectoral trade delegation or sectoral promotion and presentation trip coordinated by the Ministry,

3-k)Beneficiary: Turkey and   or resident is in free zones operating in the ICT sector; IT companies, technocities and cooperation organizations determine,

SECOND PART

Business to Support

 IT Sector Based Incentives – Market entry support

ARTICLE 5 –

 (1) Expenses related to reports to be bought or prepared by IT companies or collaboration institutions regarding sector, country, international legislation or investment; 60% of IT companies and up to a total of $100,000  annually, 70% of cooperation institutions and a maximum of $ 300,000  annually.

(2) The reports to be purchased under this article must be at most two  years from the date of publication. Preliminary approval must be obtained from the Ministry regarding the content of the report subject to the support and the organization that prepared the report. Reports without prior approval are not supported. Pre-approval; The experience of the organization that prepared the report is given by taking into consideration the expertise, the work it has done and the content of the report.


(3) A report can be prepared or a report can be purchased from any institution in Turkey or abroad that this article carries out.

ARTICLE 6

 (1) Market entry expenses for the marketing of computer games abroad are covered at a rate of 50% and a maximum of US $ 100,000, 1  for a computer game.

(2) The following market entry expenses are supported under this article:

1-a) Software and license purchase expenses for game development,

2-b) DVD preparation expenses,

3-c) Advertising expenses made in visual, written and audio media and on the internet,

ç) Expenses of the website prepared for the computer game.

(3) Information companies can apply for support within the scope of this article, Subsequently, they make their expenses to the General Directorate with “Computer Game Support Application Form (Annex B_4)” and “Computer Game Support Application Information and Documents (ANNEX B_5)” directly or by mail.

ARTICLE 7 –

(1) Commission expenses incurred by IT companies for the foreign sales of computer applications ‘’applications’’ which  produced for use in tablet computers, mobile phones or mobile devices; 50% per application and maximum $ 50,000.

(2) Applications intended for international consumers and produced in a foreign language may be supported within the scope of this article.

(3) IT companies for commission expenses incurred by the company marketing the computer application  With “Computer Software’’   Support Application Form (Annex B_6)” and “Computer Software   Support Application Information and Documents (Annex B_7)” quarterly they must apply to the general directorate directly or by the post.

Incentives Based on the Information Sector International Promotion Support

ARTICLE 8 – (1) Sponsorship, Advertisement, Promotion, Consultancy, Participation and Organization expenses related to the promotions made within the scope of fairs, congresses, conferences and ,or independent promotion programs organized abroad; It is covered by 50 % for Information Technologie companies and at the maximum amount of $ 300.000 annually, also 70% for cooperative  organization  and at the maximum amount of $ 500.000 annually covers.

(2) The following expenses are supported under this article.

1-a) Sponsorship expenses in fairs, congresses and conferences,

2-b) Translation expenses,

3-c) Rental expenses of the places where seminars, conferences, meetings and bilateral meetings are held (excluding food and catering expenses),

ç) Advertising expenses incurred in visual, written and audio media,

1-d) Public relations service expenses,

 2-e) Cost of participation in fairs, congresses and conferences,

3- f) Catalog, brochure and promotional material expenses,

4-g) Consulting expenses.

(3) Public relations service expenses include service expenses for research, coordination and planning of the organization in terms of time, place and activities, matching service expenses and service expenses for advertising campaigns,

(4) Advertisements on radio, television, newspapers, magazines, billboards and websites are included in the scope of visual, audio and written promotional activities carried out abroad. Promotional activities to be carried out in these channels cannot exceed 3  months.

(5) The total amount of support provided for catalogs, brochures and promotional materials cannot exceed $ 5,000 for each activity.

(6) In the invoices for the promotional activities carried out, the nature of the said promotional activity must be determined. In case of failure to establish a relationship between the promotional activity for which support is requested and the invoice, the said expenditure item is not covered.

(7) For promotional expenses above $ 10,000, contracts must be submitted in addition to the invoice. A separate contract is not required for activities under $ 10,000 for a single promotional activity.

(8) It is essential to design the international promotional activity to be carried out in detail, to reach the right target audience, to choose an appropriate organization location and to provide promotional mesaj using effective communication methods in order to benefit from the supports within the scope of this article.

(9) Promotional programs pre-approved within the scope of this Circular are supported. At least one month before the start date of the promotion program, the beneficiaries submit a pre-approval application to the Ministry with the program draft activity plan and estimated budget with the “Pre-Approval Application Form for Foreign Promotion Support (Annex B_8)”. The Ministry may make changes in the draft program activity plan and estimated budget while giving pre-approval. The beneficiary cannot receive support for activities that are not eligible in the pre-approval application.