It is important to note that transit trade operations carried out by Financial Centre participants should be exempt from VAT and customs duties.
In order to become a Financial Centre participant and be eligible for the above reliefs, it is necessary to:
- Establish a company in the Financial Centre;
- Obtain a certificate of participation (a sort of licence);
- Rent an office;
- Carry out transit trade transactions (other activities are possible but they may not qualify for the above-mentioned reliefs).
In order for operations to qualify as transit trade transactions, the buyer and the seller of the goods being traded must be based outside Turkey.
It is stated in the preamble to the new Law that its objectives are to increase Turkey’s international competitiveness, promote its economic growth and safeguard its economic stability by increasing the inflow of foreign currency and creating new jobs. In other words, the tax relief is designed to encourage foreign companies to carry out transit trade transactions via Turkey and accumulate trading margins in that country.