Turkey’s government will provide tax incentives for banks and other financial companies to base themselves at the planned Istanbul Finance Centre, Hürriyet newspaper reported, citing draft regulations.
Firms will be able to exclude 75 percent of earnings derived from activities at the centre from their corporate earnings, according to the set of regulations drafted by the government, Hürriyet said on Friday.
Transactions and monies received by businesses at the centre will also be exempt from the Banking and Insurance Transaction Tax and stamp duties, it said.
Turkey is seeking to establish a finance centre in Istanbul to rival Dubai and place it at the heart of banking and stock exchange activities for the region, particularly for Islamic finance.
No tax will be levied on any kind of bonds and bills issued abroad and on interest and dividends paid for lease certificates, Hürriyet said.
Persons employed at businesses at the centre will be exempt from 60 percent of income tax should they have at least five years of professional experience abroad. They will be exempt from 80 percent of the tax if they have 10 years or more of such experience, the newspaper said.
The centre will be run by the Turkey Wealth Fund, which is chaired by President Recep Tayyip Erdoğan, and through a special office established by the presidential palace, Hürriyet said.
Turkey is constructing the centre, conceived more than a decade ago, on a 170-acre site in Ataşehir on the Asian side of Istanbul. The government expects construction to be completed next year. It will locate state-run banks and regulators at the site.
Ahval