According to the new legislation, Turkey branch offices of foreign investment funds will be categorized as "permanent representatives", giving them access to rate cuts reducing the tax liability of such companies.

This regulation is taken in line with the government's project to turn Istanbul into a financial hub like London or Shangai.

The chairman of the Turkey Tax Council, Mustafa Uysal, said this regulation will help the country to turn the global financial crisis into an opportunity.

"This global crisis could make Turkey a global center. With this method, some of fund companies will be attracted to Turkey. It is calculated that the total size of these companies is10 trillion dollars. And even if only 5 percent of them decides to open an office in Turkey, that would make 50 billion dollars," Uysal told Hurriyet daily.