The recent introduction of tax rebates has led to films like Argo seeing Turkey as a legitimate alternative to the Middle East and North Africa. Argo is reported to have received a US$300,000 tax rebate. There are now plans to make Turkey even more competitive by offering industry incentives. Minister of Culture and Tourism is looking at a package that will give film-makers up to 25% of the expenditures they make while shooting a film in Turkey. This is expected to be a major factor in encouraging Hollywood productions into Turkey. Already Hollywood films provide a big boost to Turkey in terms of inward investment and thousands of jobs being created.
With regard to production of cinematographic works approved by the Ministry of Culture and Tourism, foreign film producers can receive returns of the VAT paid during procurement and import of the goods and services that they buy within the duration of film shooting.
Foreign film producers can submit their requests for VAT returns to one of the following offices:
Foreign film producers can submit their requests for VAT returns through a petition to the relevant tax office after the film shooting period has expired. The film shooting period is designated by the Ministry of Culture and Tourism.
VAT returns are processed on condition that a report submitted was drawn up by a certified financial accountant (CFA).
VAT returns are finalised within 30 days following the submission of a complete CFA report. (kftv)