Law No. 7033, known in the public as the Production Reform Package, was published in the Official Gazette on July 1, 2017, and entered into force. The fundamental changes closely affecting industrialists regarding the Production Reform Package are as follows:
• Weekend Work Permit Law Repealed: The requirement for businesses to obtain annual weekend work permits from municipalities to operate on weekends has been abolished. This removes the bureaucratic obstacle preventing businesses from working on weekends. It is important not to confuse the operation of the workplace with the operation of the employee. There has been no change to the Labor Law No. 4857 regarding the maximum weekly working hours of an employee being 45 hours. The employer is still obligated to comply with legal working hours and to grant the employee a full day off.
• Electricity TRT Fee Abolished for Industrialists: The 2% TRT fee, which was reflected in the electricity bills of businesses holding a valid Industrial Registration Certificate, has been abolished. With the elimination of the TRT fee, a significant factor that negatively impacted the competitiveness of our industrialists and increased their costs has been removed. Industrialists who submit their valid Industrial Registration Certificates to the OSTİM OSB Regional Directorate will no longer have the 2% TRT fee reflected in their electricity bills.
• Registration of Businesses in the Industrial Registry Made Mandatory: With the Production Reform Package, companies producing information technology and software are also considered industrial businesses. All newly established industrial businesses will pre-register in the industrial registry maintained by the Ministry of Science, Industry and Technology. Industrial businesses found not to be registered in the industrial registry will be subject to administrative fines. Industrial businesses, regardless of whether they are operational or not, that fail to register in the industrial registry and obtain an industrial registry certificate within one year from the effective date of the regulation (no later than July 1, 2018), will be subject to administrative fines.
• Land Allocation, Tax and Fee Exemption: Plots located in Organized Industrial Zones (OSBs) in provinces and districts determined by the Council of Ministers may be allocated entirely or partially free of charge. Regulations regarding the allocation of land are exempt from stamp duty, and land transfer and registration procedures are exempt from all types of fees.
• Property Tax Exemption: The Production Reform Package introduced a property tax exemption for buildings located in Organized Industrial Zones and Industrial Estates (provided they are not rented out).
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