Investment Incentive System

Homepage Investment Incentive SystemSTRATEGIC INVESTMENT PRACTICES

Reference: Presidency of the Republic of Turkey Investment office www.invest.gov.tr

Investment Incentive System

STRATEGIC INVESTMENT PRACTICES

 

  • Minimum fixed investment is above 50 million Turkish Liras
  • Total domestic production capacity is less than imports
  • Minimum 40% value added
  • The total amount of imports realized in the last year is over 50 million USD.

Investments that are supported as strategic investments under the Technology Oriented Industry Move Program (TOSHP) and approved by the Ministry are considered as strategic investments without seeking the above criteria.

STRATEGIC INVESTMENT INCENTIVE SUPPORT ELEMENTS

  • VAT Exemption
  • Customs Duty Exemption
  • Tax Reduction
  • Insurance Premium Employer's Share Support
  • Investment Place Allocation
  • VAT Refund
  • Insurance Premium (Workers' Share) Support (in the 6th Region and strategically supported investments within the scope of TOSHP)
  • Income Tax Withholding Support (in the 6th Region and strategically supported investments within the scope of TOSHP)

SUPPORT ELEMENTS FOR STRATEGIC INVESTMENTS

Support Elements

Support Rates and Times *

VAT Exemption

yes

Customs Duty Exemption

yes

Tax Reduction

Contribution Rate to Investment * (%)

50

Insurance Premium Employer's Share Support

7 years (10 years in the 6th region)

Investment Place Allocation

yes

Interest or

Dividend Support

Internal Loan

5 Points (10 points for high-tech product within the scope of TOSHP, 8 points for others)

Foreign Currency / Foreign Currency Indexed Loan

2 Points

Insurance Premium Workers' Share Support

10 years (Investments to be made only in the 6th region) 7 years in high-tech products within the scope of TOSHP in other regions, 5 years in others

Income Tax Withholding Support **

10 years (Investments to be made only in the 6th Region and strategic investments supported under TOSHP)

VAT Refund

yes (Only for investments of 500 Million TL and above)

 

* 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 15 points to the current investment contribution rate, The tax reduction rate is 100% and the rate of the investment contribution amount that can be used during the investment period is 100%.

** In investments that are strategically supported under TOSHP, if the product is high-tech, it can be applied to a maximum of 500 employees, and for others a maximum of 300 employees

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