Brief On Tourism Companies at Facilities

The incorporation of a tourism company does not require any special permit in addition to the standard incorporation procedure. Yet, a tourism company, which is willing to benefit from the incentives, exemptions and rights prescribed under the legislation, is obliged to obtain either a tourism investment certificate or a tourism establishment certificate as per Article 5/1 of the Law for the Encouragement of Tourism No. 2634 (“Law”). The specifications required to obtain such certificates are detailed under the Regulation on Qualifications of Tourism Facilities (“Regulation”).

In this regard, tourism investment certificate refers to a provisional certificate issued by the Ministry of Culture and Tourism (“Ministry”) at the investment stage for a definite period. The required documents for application are set forth under Article 6 of the Regulation (e.g.: a detailed report containing information such as location, purpose, the duration of the investment, capacity, tax number, signature circular). When the investment stage is partially or wholly completed, the tourism company is obliged to apply for the tourism establishment certificate at the end of the period determined by the Ministry at the latest. This is the certificate granted for the operation stage of the tourism facility. To this extent, business and operating licenses and other additional documents prescribed under Article 7 of the Regulation must be submitted to the Ministry.

After obtaining the foregoing certificates, the tourism facilities are able to benefit from several advantages, supports and incentives. You may find significant encouraging advantages below:

i. Building Construction Fee Exception: Building construction fee is not required for the buildings to be constructed.
ii. Property Tax Exemption: The income or corporate taxpayers benefit from temporary property tax exemption for 5 years as from the completion of building construction or the existing buildings allocated for this purpose.
iii. Tax, duty, fee exemptions: There are tax, duty and fee exemptions for foreign currency generating services and activities.
iv. Utility Charges: Tourism facilities pay the lowest tariffs applied to the industrial facilities and homes at that area for utilities such as electricity, gas and water.
v. Sale of Alcoholic Beverages: Tourism facilities may obtain a license for the sale of alcoholic beverages without seeking a business and operating licenses and distance requirements (the facility must be at least 100 meter away from mosques, schools, and dormitories).