Cultural Incentives law

Law 5225 on the Incentives for Cultural Investments and Enterprises was passed on 14 July 2004 and published in the Official Gazette on 21 July 2004.

The Law defines cultural centres, cultural property, intangible cultural heritage, cultural investment and cultural enterprise. Through these definitions the Law states the objectives and aims of cultural investments and enterprises to which incentives are offered. Some of these objectives and aims are for the protection and transmission to future generations of tangible and intangible cultural heritage, the maintenance of cultural properties and their exploitation as a contribution to the national economy, the creation of new artistic and cultural values and the communication of these to the public, in addition to the establishment and operation of cultural centres.

The Law provides for rules concerning not only the promotion of cultural investments and enterprises but also certification and supervision.

Investments and enterprises covered by the Law may be set up by local and foreign legal entities. Associations working for the public benefit, institutions and organizations conducting scientific research for the sustainable protection of cultural heritage, public administrations with general or private budgets, special provincial administrations, municipalities, foundations exempt from taxes by the Council of Ministers may benefit from the Law.

Activities on which incentives or reductions shall be applied are stated under four articles. These activities are namely building, maintaining and running cultural centres, building libraries, archives, museums, art galleries, art workshops, film sets, artistic design units, art studios as well as places where cultural and artistic activities or products such as cinema, plays, operas, ballet performances, concerts etc. are made, produced or exhibited in addition to building, maintaining and running special research, education or practical centres concerning cultural and artistic fields, using immovable cultural properties in line with Law 2863, conducting education, training and research in the following areas: compiling, certifying, archiving, publishing and promoting cultural property and intangible cultural heritage.

The Law offers sponsors a number of practical measures as incentives such as allocation of immovables, reductions in employer contributions to social security premiums, reduction in water bills and other energy support measures, the ability to employ foreign expert staff and artists as well as permission to operate during weekends and holidays. In addition to providing for income tax reductions, the Law grants sponsors exemption from corporate tax, which is approximately 33% under normal conditions.

The legal entities to benefit from the related Law shall also receive support for the promotion and strengthening of corporate image or trademark as well as for accessing their target group through different and diversified means. Institutions both regulating and sponsoring the activity would serve as a model for other institutions, thus emphasizing the significance of such cultural and artistic practices for social history and for society itself. They thereby contribute indirectly to increasing the quality and diversity of cultural enterprises through support for such projects.