INCENTIVES AND EXEMPTIONS APPLIED TO OIZs

INCENTIVES AND EXEMPTIONS APPLIED TO OIZs

Project Status : Active
Updated Date : 27.04.2021

DETAILS

What are the Support Elements?

  • Discounted Price Application in Parcel Allocations
  • VAT Exemption for Land and Workplace Allocation
  • Stamp Duty Exemption in Land Allocation
  • Deed Fee Exemption in Land Allocation
  • Exception from Construction and Building Use Permit Fees
  • Real Estate Tax Exemption
  • Service Fee Discount to be Paid to Building Inspection Institutions
  • Advantages for Investments with Investment Incentive Certificate

                                                                                         

  1. Cluster Support Program

Support Upper Limit: It will be evaluated separately for each cluster. Support Lower Limit: It will be evaluated separately for each cluster. Support Rate: Minimum 50% - maximum 75%

“Cluster Support Program” was announced by the Ministry in order to initiate clustering partnerships, to benefit from economies of scale by taking part in this structure, to gain cost advantage, and to strengthen the necessary cooperation environment.

The general objectives of the Cluster Support Program are as follows:

  • Increasing the competitiveness, innovativeness and productivity of Turkish industry,
  • Getting more shares from global exports,
  • Mainly producing high-tech products,
  • Transforming it into an industrial structure with a qualified workforce and at the same time sensitive to the environment and society.

The target audience of the program is cluster partnerships. A cluster association is a union that can include at least one chamber of industry in the cluster economic geography, a chamber of commerce and industry where there is no chamber of industry, and the following institutions and organizations, with at least one university being compulsory.

Those who can take part in cluster partnership:

  • Special provincial administrations
  • Local governments
  • Universities and research institutions
  • Technology development zones
  • Chambers of industry, chambers of commerce and industry, commodity exchanges established within the framework of Turkey Union of Chambers and Commodity Exchanges and the Law on Chambers and Commodity Exchanges dated 18/05/2004 and numbered 5174
  • Free zones
  • Organized industrial zones
  • Exporters' associations
  • Industrial areas
  • Associations, foundations, cooperatives, etc. organizations and organizations related to cluster unity

At least 20 companies in the core business of the cluster must undertake to cooperate with this partnership.

Support will be provided in the following categories:

Category 1: Developing Cluster Coordination, Awareness and / or Effectiveness

Category 2: Developing Factor Conditions and Markets

Category 3: Efficiency Increasing Applications

Category 4: Innovation

The duration of support for a cluster initiative is 5 years.

The financial support budget is 30 million TL in total for the 1st application period. The amount to be supported per cluster is determined as a result of evaluations.

 

The non-refundable support rate provided cannot exceed 50% of the total budget of the business plan when each business plan is completed, and 75% on the basis of each support item.

 

  1. Real Estate Tax Exemption

According to the paragraph (m) of Article 4 of the Real Estate Tax Law No. 1319, buildings in organized industrial zones, industrial zones and industrial sites are exempt from real estate tax.

 

  1. Fee Exception

According to Article 80 of the Law on Municipal Revenues No. 2464, buildings and facilities built in organized industrial zones are exempt from the building construction fee and occupancy permit fee.

Again, according to Article 80 of the Law, organized industrial zones that have an incentive certificate in the following parceling transactions carried out for the first time according to the Zoning Law within the boundaries of the municipality and adjacent areas are exempt from the "parceling fee".

According to the clause (n) added to the 59th article of the Law No.5281 and the Law No.492 on Fees, The allotment or division or merging of real estates located in organized industrial zones, industrial zones and industrial sites, transactions requiring annotation due to the allocation of the plots in the said areas, and the transfer and registration of this land and the buildings built on it are exempt from the fees collected from the process of change of type.

 

  1. Land Allocation Support in OIZs

Additional Article 3 of the OIZ Law, which allows free or partial parcel allocation in OIZs, was put into effect on 01/07/2017. The Decree of the Council of Ministers, which determines the duration and scope of the application brought by the article of the Law, entered into force by being published in the Official Gazette dated 05/06/2018 and numbered 30442, and the allocation has been provided in OIZs within this scope for 3 years from the effective date. The procedures and principles regarding the implementation are determined by the "Regulation on the Allocation of Parcels in Organized Industrial Zones for Free or Partially" published in the Official Gazette dated February 9, 2018 and numbered 30327.

The application of free allocation in OIZs, completely or partially, allows the real or legal persons who make investments that envisage employment for at least ten persons, wholly or partially free of charge allocation of parcels in the OIZs.

 

  1. Stamp Duty Exemption in OIZs

According to paragraph 53 under the heading "IV-Papers related to commercial and civil affairs" of the Table numbered (2) attached to the Stamp Duty Law numbered 488, agreements and commitments issued regarding the allocation of lands in organized industrial zones, industrial zones and industrial sites are exempt from stamp tax.

 

  1. License and Permission Fees Exemption in Industrial Zones

In accordance with the article 3 / A titled "Investment Permit" of the Industrial Zones Law No. 4737, the zoning plans, infrastructure and superstructure projects to be prepared by the managing company or the investor and the related building license, building occupancy permit and workplace opening and working licenses are subject to the approval and inspection of the Ministry of Industry and Technology. Managing companies and investors are exempt from all kinds of licenses and permits issued by the Ministry of Industry and Technology.

 

  1. Special Industrial Zones Additional Incentive Support

In accordance with the Industrial Zones Law No. 4737, Article 4 / E, additional incentives may be determined by the President of the Republic regarding Special Industrial Zones.

 

  1. Easement Right and Use Permit Duration and Fee Support

In accordance with the first paragraph of Article 13 titled "Easement Right and Usage Permit Period" of Section II of the General Principles of the National Real Estate Communiqué No.324, easement right is established in favor of investors in industrial zones for 49 years and permission to use is granted.

In accordance with the fifth paragraph titled "Price Determination" of Section II of the General Principles of the National Real Estate Communiqué No.324, the cost of easement or usage permit in industrial zones is determined at the rate of five per thousand (in case of a strategic investment) the minimum square meter unit value of the real estate subject to real estate tax.

 

  1. Service Fee Discount to be Paid to Building Inspection Institutions

In accordance with the fifth paragraph of Article 5 of the Law No. 4708 on Building Inspection, the service fee to be paid to the building inspection organizations is applied with a 75% discount for all buildings within the approved border of organized industrial zones, industrial zones and industrial sites.

 

OTHER SUPPORT OF SANAYİ VE TEKNOLOJİ BAKANLIĞI INSTITUTION