📘 Industrial parcels allocated in Organized Industrial Zones may be returned voluntarily by the participant within the periods set out in Article 60 of the OIZ Implementing Regulation, or the OIZ may cancel allocations for participants who fail to obtain the required permits and licences within the specified timeframes.
📌 Allocation Cancellation Conditions
a) Failure to obtain a building permit by having project plans for the intended structure approved by the OIZ within 1 year from the allocation date.
b) Failure to obtain a workplace opening and operation licence within 2 years from the building permit date results in cancellation; however, in the presence of force majeure the board of directors may extend these periods by 1 year each. The Ministry also has extension authority under certain conditions.
🔁 Time Extension and Repayment Difference
The refund of land allocation fees paid by the participant varies depending on whether a time extension has been granted.
📌 If the allocation is returned or cancelled without a time extension, the amount paid is updated using the revaluation rate determined under Law No. 213.
📌 If the allocation is returned or cancelled after a time extension has been granted, the repayment is calculated at the lower of the statutory interest rate and the revaluation rate.
⚠️ Practical Impact and Advice
Considering that the 2024 revaluation rate is 43.93% while the statutory interest rate was set at 24% as of 1 June 2024, significant differences may arise in the amounts paid to participants.
✅ Therefore, especially during periods of high inflation, a participant who realises they cannot carry out the investment would find it significantly more advantageous to return the allocation rather than requesting a time extension, as the difference in the refund calculation can be substantial.