Participation in Istanbul Finance Center

The Istanbul Financial Center (" IFC ") is planned to consist of two distinct sections: office spaces and an out-of-scope area. Individuals, legal entities, and their affiliates can operate in the IFC office spaces . Office space users are referred to as "participants." Participants, provided they meet certain conditions, are eligible to benefit from incentives and simplified procedures regulated under the Istanbul Financial Center Law No. 7412 (" IFC Law "). In addition, participants can benefit from additional incentives for activities considered "financial service exports" under the IFC Law. Services provided by financially active institutions to non-residents and ultimately utilized abroad are considered financial service exports . Businesses serving personnel and visitors at the IFC are included in the out-of-scope area and cannot benefit from the tax advantages, employment of foreign workers, or bookkeeping facilities granted to participants.

• IFM Office Spaces: Obtaining a Participation Certificate

All individuals and legal entities operating in the IFM office areas are required to obtain a participation certificate . The application and review processes for the participation certificate, as well as the applicable rules, are set forth in the Istanbul Financial Center Regulation (" IFM Regulation "), published in the Official Gazette dated July 7, 2023, and numbered 32241. To obtain a participation certificate, the application form on the IFM online portal must be completed and the required documents must be uploaded to the system. However, in areas subject to special legislation, such as banking and capital markets, the participant must also fulfill all license, permit, and registration requirements. If required for the activity permit process related to the activities to be conducted by the participating company, a lease agreement must be signed with TVF İFM Gayrimenkul İnşaat ve Yönetim A.Ş. (" TVF A.Ş. ") and the process is completed jointly with TVF A.Ş. (the "TVF A.Ş.")). Operating in areas outside the IFM office areas without a participation certificate is possible by entering into a real estate lease agreement with TVF A.Ş. (the "TVF A.Ş.")).

• Evaluation of Participation Certificate Applications

Applications for a participation certificate are evaluated by taking into account the development plan, medium-term program, sectoral strategies, and IFM's priorities . Istanbul's contribution to its goal of becoming a global financial center is also significant. Priority is given to applicants working in areas such as financial services, commodity trading and logistics, financial advisory and support services, energy and infrastructure investments, healthcare and agricultural technologies, artificial intelligence, and sustainable finance .

1. Cancellation or Suspension of Participation Certificate

The participant certificate will be revoked in the event of termination of the lease, loss of necessary permits and licenses, subsequent lapses in the application process, failure to fulfill commitments, false declarations, or changes in the tax identification number . In the event that the participant's license, operating permit, authorization, or permit related to their activities at the IFM is temporarily suspended, the participant certificate will be suspended starting from the effective date of the suspension . Upon resumption of activity, the suspension will be lifted, and the participant certificate will be reinstated.

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