2. Responsible agencyResponsible agency
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Ministry of Economy
General Directorate of Incentive Implementation and Foreign Direct Investment
www.economy.gov.tr
http://www.ekonomi.gov.tr/portal/faces/home/yatirim
http://www.incentive.gov.tr/
3. GeneralGeneral
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•Turkey is investment friendly country.
•Investors in Turkey enjoy from tax credit to direct financial support for their
investment.
•Almost all investment with few exceptions is encouraged but with different level.
•Each Investment is put under one program to determine eligibility of incentives.
5. The investment incentives-2The investment incentives-2
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Value Added Tax (VAT) Exemption and Refund
VAT is not paid for
imported and/or
domestically provided
machinery and
equipment within the
scope of the investment
encouragement
certificate.
VAT paid is refunded for constructions of building for Strategic Investment
exceeding 500 Million TL
6. The investment incentives-3The investment incentives-3
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Customs duty is not paid for
the machinery and equipment
provided from abroad (imported)
within the scope of the
investment encouragement
certificate.
Custom Duty Exemption
7. The investment incentives-The investment incentives-44
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Tax Reduction
Pay income or corporate tax with reduce
rates until total value reaches to said amount.
Rate of Contribution to Investment shows
% of total amount of investment. State
considers it contribute your investment by
waiving some income taxes.
State waives some parts of taxes until waived
amount reaches total contribution amount.
Contribution to investment ( with 10 % rate) is
10 TL for 100 TL investment.
10. The investment incentives-5The investment incentives-5
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Startedbefore2016
11. The investment incentives-6The investment incentives-6
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%10 more contribution to investment compared to regional incentives !!!
Startedbefore2016
13. The investment incentives-The investment incentives-99
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SOCIAL SECURITY PREMIUM SUPPORT
(Employer’s Share)
14. The investment incentives-The investment incentives-1010
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15. The investment incentives-The investment incentives-1111
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INTEREST SUPPORT
16. General investment incentives
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If the investment does not fit into any specific program, it still enjoys
general incentives regardless of region, provided that:
•Investment subject is not excluded from the investment incentives
programs
•Requirement of minimum fixed investment amount is met
General Incentives provides only customs duty and VAT exemptions
on machinery and equipment expenditures.
New thing in the new program, income tax exemption will be available on
minimum wage portion of labor, if investment is made in Region 6.
17. Regional investment incentives-1
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• Regional system aims to eliminate inter-regional imbalances by means of
encouragement of sectors determined.
• Sectors and rates of support measures have been differentiated according
to the level of development of the regions.
• Within the scope of regional investment encouragement, minimum investment
amounts are determined for certain investment subjects in each region
separately. If there is no defined minimum investment amount, it is;
– 1 Million TL. in Regions I and II,
– 500 Thousand TL. in Regions III, IV, V and VI.
18. Clustering and R&D in Regional Incentives
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Following investments will benefit from upper
level regional incentives for Tax Reduction
and Social Security Premium
• Investments in Organized Industrial Zones,
• Joint Investments by multiple (at least 5)
companies operating in the same sector which
establish integration to their activities.
21. Large scale investment incentives-1
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22. Large scale investment incentives-2
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23. Strategic investment incentives-1
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What are the Strategic Investments?
–Investments to be made for production of intermediate or final
products of which more than 50% are supplied by imports.
–Energy investments to be made for exclusive use of such
strategic investments.
24. Strategic investment incentives-2
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Eligibility criteria for Strategic Investments
to be made for production of intermediate and final products
with high import dependence
of which more than 50% are supplied by imports.
with a minimum investment amount of 50 Million ¨¨
with a minimum 40% value added
With an import of at least 50 Million $ in the last one year period
(This condition is not necessary for goods with no domestic
production)
25. Strategic investment incentives-3
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Incentives All Regions
VAT Exemption
Customs Duty Exemption
Tax Reduction
Rate of Contribution to
Investment (%)
50% (50% of the contribution can be used before the
investment is completed)
Social Security Premium Support
(Employer’s Share)
(Term of Support)
7 Years (10 years for Region 6)
Land Allocation
VAT Refund
The building and construction costs of investmentsThe building and construction costs of investments
of more than 500 Millionof more than 500 Million ¨¨
Income Tax Deduction Support 10 years only for Region 610 years only for Region 6
Social Security Premium Support
(Employee’s Share)
(Term Of Support)
10 years only for Region 610 years only for Region 6
26. Priority investment-1
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Followings are considered priority investments and will be eligible to
Region 5 incentives no matter which Regions they are.
27. Priority investment-2
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Followings are considered priority investments and will be eligible to
Region 5 incentives no matter which Regions they are.
28. Priority investment-3
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Followings are considered priority investments and will be eligible to
Region 5 incentives no matter which Regions they are.
29. Priority investment-4
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Followings are considered priority investments and will be eligible to
Region 5 incentives no matter which Regions they are.
30. Incentive Analysis in Pharmaceutical
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Priority Investment :
Minimum Investment – 20 Milyon TL - $ 10 Milyon
Make your investment in eligable for Region 5’s incentives
Tax Reduction (TR) %70, (RC) rate of contribution %30
Large Scale Investment
Minimum Investment – 50 Milyon TL - $ 25 Milyon
TR-TC 20%-50%, 25%-55%, 30%-60%, 35%-70%, 40%-80%, 45%-90%
Strategic Investment
Minimum Investment – 50 Milyon TL - $ 25 Milyon
Minimum Imports – $ 50 Milyon, More than 50% Imports share
Minimum 40% value added
TR-TC 50%-50%
