ONE OF THE MOST COMPETITIVE INVESTMENT INCENTIVES REGIMES IN EMERGING MARKETS.
TAILORED AND COMPLETE PACKAGES FOR BOTH GREENFIELD AND BROWNFIELD PROJECTS IN MANUFACTURING, SERVICES, AND R&D.
EQUAL TREATMENT OF INTERNATIONAL AND LOCAL INVESTORS.
EVER-GROWING EASE OF ACCESS TO INCENTIVES AND TAX RELIEFS.
INCENTIVES AVAILABLE IN VARIOUS SECTORS AND SCALES.
440 INCENTIVE CERTIFICATES ISSUED FOR INTERNATIONAL INVESTORS WORTH TRY 100 BILLION IN 2022, CREATING EMPLOYMENT FOR 17,000 PEOPLE.
Applicable both for greenfield and brownfield projects, the Turkish government offers a comprehensive investment incentives program with a wide range of instruments that helps to minimize the upfront cost burden and accelerate the returns on investments.
These incentives may also be tailored for projects in priority sectors classified as key areas for the transfer of technology and economic development. In addition, the Turkish government provides generous support programs for R&D and innovation projects, employee training initiatives, and for exporters through various grants, incentives, and loans.
INCENTIVES INSTRUMENTS
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Corporate Tax Reduction
Corporate tax is paid with reduction.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Social Security Premium Support (Employee’s Share)
The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Interest Rate Support
A certain portion of the interest to be paid for loans obtained will be covered by the government.
Land Allocation
Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.
VAT Exemption for Construction
Construction expenses are exempt from Value-Added Tax (VAT).
Infrastructure Support
Investor's infrastructural needs such as electricity, natural gas, etc. can be covered.
Energy Support
Energy expenditures will be partially rebated to the investor.
Capital Contribution Support
Government can make capital contribution of up to 49% of the investment amount.
Purchasing Guarantee
Public purchase guarantee can be provided for products to be produced within the scope of the investment.
Facilitation of Authorization/ Permit/ License Procedures
An exception may be introduced by virtue of a presidential decree for authorizations, allocation, permits, licenses and registrations among other restrictive provisions.
Training Support
Daily expenses and eligible training costs will be covered by İŞKUR.
Qualified Personnel Support
Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)
R&D/Design Discount
R&D and design expenditures are wholly deductible from the corporate tax base.
Corporate Tax Exemption
No corporate tax is payable.
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Credit Support
Credit opportunities with reduced rates are provided to investors to improve exportation.
Special Consumption Tax Exemption
Enterprises in free zones are exempt from special consumption tax.
Property Tax Exemption
No property tax is payable for land and buildings.
Stamp Duty Exemption
No stamp duty is payable for documents.
TYPES OF INCENTIVES
General Investment Incentives Scheme
Tax exemption for procurement of machinery and equipment, regardless of the investment region.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Regional Investment Incentives Scheme
Higher incentives for investments to be made in less developed regions. (including Priority Investment Incentives that offer incentives regardless of the investment region for manufacturing of medium-high tech and high-tech products)
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Corporate Tax Reduction
Corporate tax is paid with reduction.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Social Security Premium Support (Employee’s Share)
The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Interest Rate Support
A certain portion of the interest to be paid for loans obtained will be covered by the government.
Land Allocation
Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.
VAT Exemption for Construction
Construction expenses are exempt from Value-Added Tax (VAT).
Property Tax Exemption
No property tax is payable for land and buildings.
Strategic Investment Incentives Scheme
High incentives in areas with high importation.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Corporate Tax Reduction
Corporate tax is paid with reduction.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Social Security Premium Support (Employee’s Share)
The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Interest Rate Support
A certain portion of the interest to be paid for loans obtained will be covered by the government.
Land Allocation
Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.
VAT Exemption for Construction
Construction expenses are exempt from Value-Added Tax (VAT).
Property Tax Exemption
No property tax is payable for land and buildings.
Project-Based Investment Incentives
Tailor-made incentives for areas with critical importance for Türkiye.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Corporate Tax Reduction
Corporate tax is paid with reduction.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Social Security Premium Support (Employee’s Share)
The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Interest Rate Support
A certain portion of the interest to be paid for loans obtained will be covered by the government.
Land Allocation
Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.
VAT Exemption for Construction
Construction expenses are exempt from Value-Added Tax (VAT).
Infrastructure Support
Investor's infrastructural needs such as electricity, natural gas, etc. can be covered.
Energy Support
Energy expenditures will be partially rebated to the investor.
Capital Contribution Support
Government can make capital contribution of up to 49% of the investment amount.
Purchasing Guarantee
Public purchase guarantee can be provided for products to be produced within the scope of the investment.
Facilitation of Authorization/ Permit/ License Procedures
An exception may be introduced by virtue of a presidential decree for authorizations, allocation, permits, licenses and registrations among other restrictive provisions.
Qualified Personnel Support
Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Property Tax Exemption
No property tax is payable for land and buildings.
Other State Support (including KOSGEB)
Grant and loan opportunities for SMEs.
Interest Rate Support
A certain portion of the interest to be paid for loans obtained will be covered by the government.
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Other State Support (including Regional Development Agencies)
Development Agencies provide grant supports for certain investment areas in order to boost their regional development and competitiveness.
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Employment Supports
Tax exemptions and cashback supports for employment and personnel training.
Social Security Premium Support (Employee’s Share)
The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.
Training Support
Daily expenses and eligible training costs will be covered by İŞKUR.
R&D Law
Tax benefits for R&D centers and design centers.
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
R&D/Design Discount
R&D and design expenditures are wholly deductible from the corporate tax base.
Stamp Duty Exemption
No stamp duty is payable for documents.
Technology Development Zones Incentives
Tax benefits for companies that are located in Technoparks.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Social Security Premium Support (Employer’s Share)
The employer’s share of the social security premium calculated for employment will be covered by the government.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Corporate Tax Exemption
No corporate tax is payable.
Stamp Duty Exemption
No stamp duty is payable for documents.
TUBITAK
Grant opportunities for research, technology development, and innovation activities.
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Incentives for Regional Management Centers & Liaison Offices
Tax advantages for international companies that move their regional management centers to Türkiye.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Stamp Duty Exemption
No stamp duty is payable for documents.
Export Support Instruments by the Ministry of Trade
Tax exemptions and cashback supports in order to increase Türkiye’s exports.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Cashback Support
Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.
Special Consumption Tax Exemption
Enterprises in free zones are exempt from special consumption tax.
Stamp Duty Exemption
No stamp duty is payable for documents.
Free Zones Incentives
Free Zones offer tax benefits especially for export-oriented investments.
VAT Exemption for Machinery
Purchased machinery and equipment are exempt from Value-Added Tax (VAT).
Customs Duty Exemption
Customs duty is not payable for machinery and equipment to be supplied from abroad.
Income Tax Withholding Support
The income tax determined for employment will be exempt.
Corporate Tax Exemption
No corporate tax is payable.
Special Consumption Tax Exemption
Enterprises in free zones are exempt from special consumption tax.
Property Tax Exemption
No property tax is payable for land and buildings.
Stamp Duty Exemption
No stamp duty is payable for documents.
Eximbank
Credit opportunities to increase Türkiye’s exports.
Credit Support
Credit opportunities with reduced rates are provided to investors to improve exportation.
INCENTIVES TEAM AT THE INVESTMENT OFFICE
- has extensive experience with investment incentives authorities
- prepares preliminary financial calculations for investment projects
- prepares tailor-made information packages on available incentives
- assists and guides through the process of applying for investment incentives
- communicates in the investor’s language
- supports further expansion and business plans
- provides all services free-of-charge and works on a confidential basis
GLOBAL COMPANIES BENEFITING FROM INCENTIVES
