In Turkey, there are state investment incentive programs to encourage domestic and foreign investments and the country is divided into different investment incentives region. The new investment incentive system aims to encourage investments that have the potential to reduce import dependency on intermediate goods, which are of particular importance for the strategic sectors of the country. You will find some details about investment incentives system in Turkey in this article.
Investment Incentive Zones by Provinces
Increasing exports by reducing imports, increasing investment supports to less developed regions, increasing the amount of support elements, promoting clustering activities, supporting future-oriented investments that will provide advanced technology transformation are among the main objectives of the new investment incentive system.There are six investment incentive zones, which are deisgned by considering these issues and show different characteristics in terms of the advantages and benefits they provide. Investments are more encouraged in the provinces in the 5th and 6th regions. Investment incentive zones are as follows;
Zone 1:
Ankara, Antalya, Bursa, Eskişehir, Istanbul, İzmir, Kocaeli and Muğla.
Zone 2:
Adana, Aydın, Bolu, Çanakkale, Denizli, Edirne, Isparta, Kayseri, Kırklareli, Konya, Sakarya, Tekirdağ and Yalova.
Zone 3:
Balıkesir, Bilecik, Burdur, Gaziantep, Karabük, Karaman, Manisa, Mersin, Samsun, Trabzon, Uşak and Zonguldak .
Zone 4:
Afyonkarahisar, Amasya, Artvin, Bartın, Çorum, Düzce, Elazığ, Erzincan, Hatay, Kastamonu, Kırıkkale, Kırşehir, Kütahya, Malatya, Nevşehir, Rize and Sivas.
Zone 5:
Adıyaman, Aksaray, Bayburt, Çankırı, Erzurum, Giresun, Gümüşhane, Kahramanmaraş, Kilis, Niğde, Ordu, Osmaniye, Sinop, Tokat, Tunceli and Yozgat.
Zone 6:
Ağrı, Ardahan, Batman, Bingöl, Bitlis, Diyarbakır, Hakkâri, Iğdır, Kars, Mardin, Muş, Siirt, Şanlıurfa, Şırnak and Van.
New Investment Incentives System
We can say there are 4 main topics for the new incentives system in Turkey.
General Incentive Practices:
All projects that meet the determined capacity conditions and minimum fixed investment amount are supported within the framework of General Investment Incentive Practices, regardless of the region where the investment will be made. Some types of investments are not subject to an investment incentive system and cannot benefit from this regime.
VAT Exemption
Within the scope of the investment incentive certificate, VAT is not paid for machinery and equipment to be procured domestically and abroad.
Customs Tax Exemption
No customs duty is paid for machinery and equipment to be procured from abroad within the scope of the investment incentive certificate.
Regional Incentive Practices:
While the sectors to be supported in each region are determined in accordance with the potential of the region and the local economic scale sizes, the intensity of the supports to be provided varies depending on the level of development of the regions.
*VAT Exemption
*Customs Tax Exemption
*Tax Discount
*Insurance Premium Employer Share Support
*Investment Location Allocation
*Interest Support
Incentives of Large Scale Investments:
Potentially Turkey’s technology, R & D capacity and production of chemical products to increase their competitiveness, ports, port services and airport investments, motor vehicles are the main industries, motor vehicles industry, railway and tramway locomotives and / or wagons manufacturing, 12 investments such as transit pipeline transportation services, electronics industry, medical instrument, precision and optical instruments manufacturing, pharmaceutical manufacturing, air and space vehicles and / or parts manufacturing, machinery and mining is supported within the framework of Large Scale Investment Incentive Practices.
*VAT Exemption
*Customs Tax Exemption
*Tax Discount
*Insurance Premium Employer Share Support
*Investment Location Allocation
Promotion of Strategic Investments:
*VAT Exemption
*Customs Tax Exemption
*Tax Discount
*Investment Location Allocation
*Interest Support
*VAT Refund
Who can Benefit from the Investment Incentives ?
The instutitions which can get benefit from the incentives in Turkey;
*Real persons, ordinary partnerships, capital companies, unions, cooperatives, business partnerships,
Public institutions and organizations,
*Professional organizations and universities that are public institutions,
*Associations and foundations,
*The branches of foreign companies in Turkey
Moreover, the company established in Turkey by foreign persons or foreign companies can benefit from the incentives.
