FREE ZONES ESTABLISHMENT AND DEVELOPMENT FUND, RENT AND SERVICE CONTRACTS
Free Zones Establishment and Development Fund
Article 40- Accounts will be opened with the Central Bank of the Republic of Turkey, in Turkish Lira and U.S. Dollars or the foreign currency to enable the payments connected with the “Free Zones Establishment and Development Fund” established as per Article 7 of the Law to be made. In addition, Zone Directorates shall open Turkish Lira accounts and foreign exchange accounts in U.S. Dollars or other convertible currency, with the Ziraat Bank branch in the Zone, if there is one or otherwise with any public or private bank in order to provide for all payments realized in their Zones to be transferred to the central account within 5 working days.
Article 41- Fund revenues consists of the following items:
The contributions specified in their contracts are not levied on revenues of the Operator or the Z.F.O. that arise from the renting of buildings and facilities constructed by them or on their behalf after they obtained a separate Operation Licence and opened separate account books or as a result of their setting up partnerships in organizations engaged in the activities which it is envisaged to be performed in the Zone.
Beside these revenues, the entire fee is reimbursed in cases when candidate users are refused Operation Licence although they have paid the Licence Fee or when the existence of the following circumstances is confirmed by the authorities and the General Directorate accepts that they constitute cases of Force Majeure:
- Natural disasters such as fires, earthquakes or floods that prevent operation,
- The prevention or prohibition of the execution of activity by a public authority,
- Cases when embargoes in international economic relations, quotas and/or other changes affect the economy in such a way as to prevent the activities from being carried out.
In cases other than these, when it is reported that the activity will not begin or that the activity is to be terminated and the reimbursement of the licence fee is requested, the entire fee paid shall be forfeited as revenue to the Fund.
The receipt given for payments to the Fund shall include detailed information such as the name and surname of the payer, the trade title of the user and the amount and type of the payment.
Revenues collected by the Zone Directorates shall be deposited with the Turkish Lira or foreign currency account, as appropriate, with the Central Bank of Turkey by the end of the working day following their collection and those paid to the bank branch specified in article 40 transferred to the account in question within 5 working days.
Collection of Fund Revenues and Reimbursements
Article 42- Fund Revenues that are not been paid or not fully paid shall be collected and excess amounts reimbursed in accordance with the following principles:
Pursuit of Fund Receivables, Penalties and Prescription
Article 43- Fund Revenues that are not paid and penalties in connection with these shall be followed up as per the provisions of the Code of the Execution and Bankruptcy.
If debts of the Fund are linked to an activity that calls for criminal action and the period for which lawsuits are allowed to continue in this connection is longer, then the periods allowed for the lawsuit and penalty under the Turkish Penal Code shall apply for such debts.
Article 44- Zone Directorates shall submit their program proposals on revenue and expenditure estimates with regard to the following year to the General Directorate by the end of working hours on the 15th of July every year. The General Directorate shall plan the expenditures of the central organization by the same date and shall contact the Zone Directorates about the proposals sent by the Zones, complete the necessary revisions and submit them to the approval of the Minister to which the Undersecretariat is attached by the last week of August at the latest. Any transfer to be made between the Fund items thereafter shall come into effect upon the reapproval of the Undersecretariat.
The General Directorate and the Zones shall make expenditures within the framework of their budgets and the appropriations assigned to them. In central organization, the Minister concerned, the Undersecretary, the Deputy Undersecretary and the General Director shall be authorized to make the expenditures, depending on their size, and in the Zones the Zone Directors and the personnel authorized by them shall be authorized to make the expenditures, within the financial limits specified and approved by the Minister. The General Directorate is authorized to make expenditures and transfers where the total sum or ratio involved are laid down exactly by the Law, Decrees, Bye-Laws and Regulations.
Principles of Expenditure
Article 45- For expenditures to be made by the General Directorate, a request should first be received from the Department Head responsible by the Head of the Financial Affairs Department, and this demand should be submitted for the approval of the General Directorate through the Deputy Director General responsible for finance.
For the purchases to be made from the Fund by the General Directorate, the purchasing committee shall consist of the Department Head concerned with the expenditure, an official from the same department and an official of the department concerned with financial affairs under the chairmanship of the Deputy Director General in charge of financial matters. The decisions of the Purchasing Committee shall be submitted for the approval of the concerned authority, considering the expenditure limits mentioned in Article 44.
Expenditures to be made by the Zone Directorate are to be decided by a committee consisting of two officials, one from the financing department and the other from the accounts service, under the chairmanship of the Zone Director or the person authorized by him in his absence. The names of the personnel thus assigned with this task shall be submitted to the General Directorate one month before the beginning of each financial year.
The list of the personnel authorized to make expenditures on behalf of the Fund at the central and regional levels shall be submitted to the Central Bank of the Republic of Turkey by the General Directorate.
Amounts of cash held in the Fund with the Central Bank of the Republic of Turkey may be made profitable by the General Directorate by investing them in Treasury Bonds and Government Bills.