A bill introduced to the Turkish parliament this week has brought to light details of the Istanbul Financial Center (IFC) project.

The parliament’s Planning and Budget Committee accepted the bill for the establishment of the IFC this Wednesday.

Its main aim is to increase Türkiye’s financial competitiveness in the international arena, as well as contribute to the development of products and services for financial markets, by positioning Istanbul as a hub of international finance.

According to the bill, financial institutions at the IFC will have certain tax advantages, one of them being that 75% of their income will be deducted from the corporate tax base.

Financial institutions will also get tax exemption for banking and insurance transactions related to financial services carried out at the IFC and the payments received for these transactions.

Companies will also have fees and stamp exemptions.

It also proposes income tax exemption on monthly salaries of employees of financial institutions that have IFC participant certificates: 60% exemption for individuals with at least five years of professional experience abroad and 80% exemption for those with at least 10 years of professional experience in other countries.

The exemptions will also apply to regional treasury and financial management centers of institutions that are active in at least three countries.

The bill also proposes that the Treasury and Finance Ministry will be authorized to make regulations under which financial institutions operating at the IFC will be allowed to maintain their books and documents in foreign currency.

President Recep Tayyip Erdogan has previously stated his objective of making Türkiye a hub for Islamic finance, emphasizing that the IFC is a critical part of this plan./aa