The Covid-19 health crisis marked the year by creating global disruptions, which are estimated to translate into a notable fall in the World GDP for 2020. The global gross domestic product is not expected to return to December 2019 levels until the second half of 2021.
According to UNCTAD’s World Investment Report 2020, global foreign direct investment (FDI) flows are anticipated to decrease by up to 40 percent in 2020, from their 2019 value of $1.54 trillion. This fall would bring the global FDI below the $1 trillion threshold for the first time in fifteen years. A recovery is anticipated for 2022.
In the face of the bleak economic outlook, many governments across the world have stepped up to unveil financial support packages in an attempt to counteract the negative impact of Covid-19. Shortly after the first Covid-19 case was reported in March, the Turkish government unveiled a $15.4 billion relief package, which included tax cuts and debt payment delays. The employment shield package was announced in the following months to protect employment, top agenda for the government’s normalization efforts.
Investment in Turkey 2020, compiled by KPMG Turkey’s Tax Practice, aims to provide general outline of the Turkish tax environment for foreign investors, reflecting developments to September 2020. The release of this publication was delayed due to the persistent new measures introduced since the beginning of the epidemic outbreak. The set of information contained in this publication is an introduction for the foreign investors that plan to take a look into tax and business environment in Turkey.