SUPPORT ELEMENTS IN THE INVESTMENT INCENTIVE CERTIFICATE

• VAT Exemption

It is applied in the form of non-payment of value added tax for the sale and lease of investment goods machinery and equipment, software and intangible rights within the scope of the investment incentive certificate to be procured domestically and abroad.

• Customs Duty Exemption

It is applied in the form of non-payment of customs duty for machinery and equipment, investment goods, to be procured from abroad within the scope of the Investment Incentive Certificate.

• Tax Reduction

Tax Reduction is the application of income or corporate tax at a reduced rate until the contribution amount foreseen for the investment reaches.

This support is provided within the scope of incentive certificates issued within the framework of strategic investments, regional incentive practices and priority investments incentives.

• Insurance Premium Employer's Share Support

The insurance premium employer's share, which must be paid for the additional employment provided by the investment within the scope of the Investment Incentive Certificate, is covered by the Ministry for a certain period of time, corresponding to the minimum wage.

Strategic investments are applied for incentive certificates issued within the scope of regional and priority investments incentive practices.

• Income Tax Withholding Support

Within the scope of the Investment Incentive Certificate, the part corresponding to the minimum wage of the income tax withholding payable for the additional employment provided by the investment is canceled for 10 years.

It is only foreseen in the incentive certificates issued for investments to be made in the 6th zone. It can also be applied to strategic investments supported under the Technology Oriented Industry Move Program (TOSHP).

• Insurance Premium Workers' Share Support

The amount corresponding to the minimum wage of the insurance premium workers' share, which must be paid for the additional employment provided by the investment within the scope of the Investment Incentive Certificate, is covered by the Ministry for 10 years.

Except for the general incentive applications, it is foreseen in the incentive certificates issued only for the investments to be made in the 6th Region. It can also be applied to strategic investments supported under the Technology Oriented Industry Move Program.

• Interest or Dividend Support

It is a financing support provided for loans with a maturity of at least one year used within the scope of the Investment Incentive Certificate.

A certain part of the interest or dividend to be paid for the loan used up to 70% of the fixed investment amount registered in the incentive certificate is covered by our Ministry.

This support element is applied for strategic investments, R&D and environmental investments, regional incentives in the 3rd, 4th, 5th and 6th regions and investments to be made within the scope of priority investments incentive practices.

• Investment Place Allocation

For strategic investments, regional and priority investments with an Investment Incentive Certificate, an investment location may be allocated within the framework of the procedures and principles determined by the Ministry of Environment and Urbanization (National Real Estate General Directorate).

• VAT Refund

It is the refund of the VAT collected for the building-construction expenditures realized within the scope of the Strategic Investments with a fixed investment amount of more than 500 million Turkish Liras.

Building-construction expenses related to all investments with incentive certificates to be made in the manufacturing sector between 1/1/2017 and 31/12/2021 can benefit from VAT refund.

MINIMUM INVESTMENT AMOUNTS IN INVESTMENT INCENTIVE CERTIFICATES

• Minimum fixed investment amount in the General Incentive System;

1 million TL in I and II Regions,

It is 500 thousand TL in III., IV., V and VI Regions.

• The minimum fixed investment amount determined for Strategic Investments is 50 million TL.
• For the Regional Incentive Applications, it is determined separately for each sector and each province, starting from a minimum of 500 thousand TL.

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