INVESTMENT INCENTİVES
2015-03-12 13:29:16

Investment Incentives

The new investment incentives scheme is specifically designed to encourage investments with the potential to reduce dependency on the importation of intermediate goods vital to the country’s strategic sectors.

Amongst the primary objectives of the new investment incentives scheme are: reduce the current account deficit; boost investment support for lesser developed regions; increase the level of support instruments; promote clustering activities; and to support investments that will create the transfer of technology.

 Effective as of January 1, 2012, the new investment incentives system has been comprised of four different schemes. Local and foreign investors have equal access to:

  1. General Investment Incentives Scheme
  2. Regional Investment Incentives Scheme
  3. Large-Scale Investment Incentives Scheme
  4. Strategic Investment Incentives Scheme

The support instruments to be provided within the framework of the various investment incentives schemes are shown in the following table:

Support Instruments

General Investment

Incentives Scheme

Regional Investment

Incentives Scheme

Large-Scale Investment

Incentives Scheme

Strategic Investment

Incentives Scheme

VAT Exemption

+

+

+

+

Customs Duty Exemption

+

+

+

+

Tax Reduction

 

+

+

+

Social Security Premium Support

(Employer’s Share)

 

+

+

+

Income Tax Withholding Allowance *

 

+

+

+

Social Security Premium Support

(Employee’s Share) *

 

+

+

+

Interest Rate Support **

 

+

 

+

Land Allocation

 

+

+

+

VAT Refund***

 

 

 

+

*Provided that the investment is made in Region 6.

**Provided that the investment is made in Regions 3, 4, 5 or 6 within the framework of the Regional Investment Incentives Scheme.

***For construction expenditures of strategic investments with a minimum fixed investment amount of TRY 500 million. 

 

Support InstrumentsGeneral InvestmentIncentives SchemeRegional InvestmentIncentives SchemeLarge-Scale InvestmentIncentives SchemeStrategic InvestmentIncentives SchemeVAT Exemption++++Customs Duty Exemption++++Tax Reduction+++Social Security Premium Support(Employer’s Share)+++Income Tax Withholding Allowance *+++Social Security Premium Support(Employee’s Share) *+++Interest Rate Support **++Land Allocation+++VAT Refund***+