Ministry of Industry and Technology (General Directorate of Incentive Implementation and Foreign Investment)
- 2012/3305 numbered Resolution
- 2012/1 numbered Communique
- 2018/11930 numbered Resolution
GENERAL INFORMATION
Five different systems are provided within this Investment Programme, which are as follows:
Regional Incentive Applications
Mainly aims at reducing development gap between the cities and increasing export potential.
Components of this System:
- VAT Exemption – KDV İstisnası
- Customs Duty Exemption – Gümrük Vergisi Muafiyeti
- Tax Reduction – Vergi İndirimi
- Support for Employer’s National Insurance Contribution – Sigorta Primi İşveren Hissesi Desteği
- Allocation for Investment Place – Yatırım Yeri Tahsisi
- Support for Loan Interest – Faiz Desteği
- VAT Return – KDV İadesi
Primary Investment Matters
Aims at granting incentives provided for 5th Region (these are least developed cities and amount/percentage of supports are relatively high for this region) for specific investments matters.
Components of this System:
- VAT Exemption – KDV İstisnası
- Customs Duty Exemption – Gümrük Vergisi Muafiyeti
- Tax Reduction – Vergi İndirimi
- Support for Employer’s National Insurance Contribution – Sigorta Primi İşveren Hissesi Desteği
- Allocation for Investment Place – Yatırım Yeri Tahsisi
- Support for Loan Interest – Faiz Desteği
- Support for Income Tax Withholding – Gelir Vergisi Stopajı Desteği
Macro-scaled Investments
Aims at increasing technological and research-development potential and supports goods that have potential on creating competitive advantage.
Components of this System:
- VAT Exemption – KDV İstisnası
- Customs Duty Exemption – Gümrük Vergisi Muafiyeti
- Tax Reduction – Vergi İndirimi
- Support for Employer’s National Insurance Contribution – Sigorta Primi İşveren Hissesi Desteği
- Allocation for Investment Place – Yatırım Yeri Tahsisi
- Support for Income Tax Withholding – Gelir Vergisi Stopajı Desteği
- Support for Loan Interest – Faiz Desteği
Strategic Investments
Has the purpose to reduce Current Deficit by supporting production of goods with high added value.
Components of this System:
- VAT Exemption – KDV İstisnası
- Customs Duty Exemption – Gümrük Vergisi Muafiyeti
- Tax Reduction – Vergi İndirimi
- Support for Employer’s National Insurance Contribution – Sigorta Primi İşveren Hissesi Desteği
- Allocation for Investment Place – Yatırım Yeri Tahsisi
- Support for Income Tax Withholding – Gelir Vergisi Stopajı Desteği
- Support for Loan Interest – Faiz Desteği
- VAT Return – KDV İadesi
General Incentives
Other investment matters that are not stipulated under other systems.
Components of this System:
- VAT Exemption – KDV İstisnası
- Customs Duty Exemption – Gümrük Vergisi Muafiyeti
- Support for Income Tax Withholding – Gelir Vergisi Stopajı Desteği (Only for 6th Region)
Procedure to Benefit from Investment Incentives
Investors should apply for the IIC (Investment Incentive Certificate) in order to benefit incentives under a certain system. Application should be made to the Ministry (Directorate General of Implementation of Incentive and Foreign Capital) or local authorities (Chambers of Industry or Development Agents).
Real persons, partnerships, capital stock companies, cooperatives, unions, joint ventures, public institutions and organizations, professional organizations with public institution status, associations and foundations and branches of foreign companies meeting conditions stipulated under each system are eligible for applying. As provided by the Act, foreigners and legal entities established per foreign laws also benefit from incentives granted by the System under the principle of equal treatment.
Application procedure has been defined in the Communiqué. According to Communiqué in order for an investment to benefit from these incentives, investment projects should be accepted as eligible by the Directorate in terms of macro-economic programs, supply-demand balances and industrial, fiscal and technical aspects and the investments should be tied to an investment incentive certificate (“IIC”). In order to get this Certificate one should apply before establishment of the Investment. This is an important issue because one can only benefit from incentives with this IIC Document. Any investment which is established before granting of the IIC Document cannot benefit from incentives provided under this Communique.
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