Investment Incentive System
Reference: Presidency of the Republic of Turkey Investment office www.invest.gov.tr
REGIONAL INCENTIVE PRACTICES
The sectors specified by provinces in the Annex of the Decree in Regional Incentive Practices benefit from the following supports if they provide the minimum capacity or amounts.
REGIONAL INCENTIVE SUPPORT ELEMENTS
- VAT Exemption
- Customs Duty Exemption
- Tax Reduction
- Insurance Premium Employer's Share Support
- Interest or Dividend Support (in 3rd, 4th, 5th and 6th Regions)
- Investment Place Allocation
- Insurance Premium Support (in the 6th Region)
- Income Tax Withholding Support (in the 6th Region)
|
SUPPORT ELEMENTS IN REGIONAL INCENTIVE PRACTICES |
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|
SUPPORT ELEMENTS |
REGIONS |
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|
I |
II |
III |
IV |
V |
VI |
|||
|
VAT Exemption |
yes |
yes |
yes |
yes |
yes |
yes |
||
|
Customs Duty Exemption |
yes |
yes |
yes |
yes |
yes |
yes |
||
|
Tax Reduction |
Investment Contribution Rate * (%) |
Out of OIZ and EB |
15 |
20 |
25 |
30 |
40 |
50 |
|
In OIZ and EB |
20 |
25 |
30 |
40 |
50 |
55 |
||
|
Insurance Premium Employer's Share Support |
OIZ and Out of EB |
2 years |
3 years |
5 years |
6 years |
7 years |
10 years |
|
|
In OIZ and EB |
3 years |
5 years |
6 years |
7 years |
10 years |
12 years |
||
|
Investment Place Allocation |
yes |
yes |
yes |
yes |
yes |
yes |
||
|
Interest or Dividend Support |
Internal Loan |
- |
- |
3 points |
4 points |
5 points |
7 points |
|
|
Foreign Currency / Foreign Currency Indexed Loan |
- |
- |
1 point |
1 point |
2 points |
2 points |
||
|
Insurance Premium Workers' Share Support |
- |
- |
- |
- |
- |
10 years |
||
|
Income Tax Withholding Support |
- |
- |
- |
- |
- |
10 years |
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EB: Investments made in the Industrial Zone for the manufacturing industry.
* Within the scope of investment incentive certificates issued for the manufacturing industry (US-97 Code: 15-37) for investment expenditures to be realized between 1/1/2017 and 31/12/2022 the investment contribution rate is added to the investment contribution rate valid in each region by adding 15 points, the tax reduction rate is applied as 100% in all regions and the rate of the investment contribution amount that can be used in the investment period is 100%.,
Investments to be made in districts within the scope of regional incentive applications
Investments to be made in the districts of the provinces of the 1st, 2nd, 3rd and 4th regions included in ANNEX-7 benefit from the regional supports provided to a sub-region of the province where the district is located, and the investments to be made in the organized industrial zones or industrial zones of the districts in question benefit from the regional supports provided to the two sub-regions of the province. Regional supports provided to the 6th region for the investments to be made in the districts of the provinces of the 5th region included in Annex-7, and the 6th region supports are applied to the investments to be made in the organized industrial zones or industrial zones of the said districts, in order to apply the provisions of the second paragraph. Investments to be made within the framework of the provisions of this paragraph cannot benefit from insurance premium support and income tax withholding support.
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