The Law Amending Certain Tax Laws and Other Laws No. 7061 (the "Law") was published in the Official Gazette No. 30261 on December 5, 2017. The Law expands the ability of the Undersecretariat (the "Treasury") to provide funding to venture funds.
Prior to the amendment, the Treasury could only invest in funds of funds (üst fon) ("Funds of Funds") established for the purpose of investing in certain funds (alt fon) ("Sub-Funds"). The Treasury, in addition to the Funds of Funds, can now also invest in Sub-Funds and venture capital companies. The Council of Ministers will be authorized to regulate the Treasury's investment limits for these funds and companies; the selection criteria for investments; the investment areas; the monitoring and supervision of these investments; the fees and costs payable for the investments; and other procedures concerning the Treasury's investments.
The amendment will allow companies and funds seeking funding to obtain easier and quicker access to Treasury resources. Additionally, Treasury funding will encourage foreign funds to commit to long term investments in Turkey.