The investment incentives program, which will be effective from the 1st January 2012
comprises 4 different schemes:
1- General Investment Incentive Scheme
2- Regional Investment Incentive Scheme
3- Priority Investment Incentive Scheme
4- Strategic Investment Incentive Scheme
The support measures to be provided within the frame of those schemes are summarized in the table below:
THE SUPPORT MEASURES
VAT Exemption:
In accordance with the measure, VAT is not paid for imported and/or locally provided
investment machinery and equipment as well as selling and renting of intangible rights and
software within the scope of the investment encouragement certificate.
Customs Duty Exemption:
Customs duty is not paid for the machinery and equipment provided from abroad (imported)
within the scope of the investment incentive certificate.
Tax Deduction:
Calculation of income or corporate tax with reduced rates until the total value reaches to the
amount of contribution to the investment according to envisaged rate of contribution.
Social Security Premium Support (Employer’s Share):
The measure stipulates that for the additional employment created by the investment,
employer’s share of social security premium on portions of labor wages corresponding to
amount of legal minimum wage, will be covered by the Ministry.
Income Tax Withholding Allowance:
The measure stipulates that the income tax regarding the additional employment generated by
the investment within the scope of the investment encouragement certificate will not be liable
to withholding. The measure is applicable only for the investments to be made in Region 6
and the strategic investments supported under the TFIMP within the scope of an investment
incentive certificate.
Social Security Premium Support (Employee’s Share):
The measure stipulates that for the additional employment created by the investment,
employee’s share of social security premium on portions of labor wages corresponding to
amount of legal minimum wage, will be covered by the Ministry. The measure is applicable
only for the investments to be made in Region 6 and the strategic investments supported under
the TFIMP within the scope of an investment incentive certificate.
Interest/Profit Share Support:
Interest/Profit share support, is a financial support instrument, provided for the loans with a
term of at least one year obtained within the frame of the investment encouragement
certificate. The measure stipulates that a certain portion of the interest/profit share regarding
the loan equivalent of at most 70% of the fixed investment amount registered in the certificate
will be covered by the Ministry.
Land Allocation:
Refers to allocation of land to the investments with Investment Incentive Certificates, if any in
that province in accordance with the rules and principles determined by the Ministry of
Finance.
VAT Refund:
VAT collected on the building & construction expenses made within the frame of strategic investments with a fixed investment amount of 500 million TL will be rebated. Effective from 1 January 2021 ,the following Regional Map and Table of Provinces show classification of provinces for the implementation purpose of the Investment Incentives Program
GENERAL INVESTMENT INCENTIVES SCHEME
Regardless of in which Region an investment is made all projects which meet conditions of
specific capacity and the following minimum fixed investment amount will be supported
within the frame of the General Investment Incentives Scheme. Investment subjects which are
excluded from the investment incentives program can not benefit from this scheme.
The amount of minimum fixed investment is 1 million TL in Region 1 and 2 and 500
thousand TL in Regions 3, 4, 5 and 6.
REGIONAL INVESTMENT INCENTIVES SCHEME
The sectors to be supported in each province are determined in accordance with potentials of
the provinces and the economies of scale and the intensity of the supports are differentiated in
line with the development level of the regions.
The amount of minimum fixed investment is defined separately for each sector and each
region, the lowest amount being 1 million TL in Regions 1 and 2, and 500 thousand TL in the
remaining Regions.
The terms and rates of supports within the Regional Investment Incentives Scheme are
summarized in the Table below:
REGIONAL INVESTMENTS INCENTIVE SCHEME MEASURES
PRIORITY INVESTMENTS INCENTIVE SCHEME
The following investment subjects have been designated as priority investments within the
framework of our country’s requirements and these investments are supported by measures of
Region 5 even if they are made in Regions 1, 2, 3 and 4.
✓ Tourism investments in Cultural and Touristic Preservation and Development Regions
and thermal tourism investments,
✓ Mining investments,
✓ Railroad, maritime and airline transportation investments,
✓ Defense industry investments,
✓ Test center investments for products in the medium-high and high-tech industry class
according to the technology density definition of the Organization for Economic
Cooperation and Development (OECD).Nursery, Preschool, Primary, Middle and High
School and education investments for the use, repair and maintenance of air vehicles
✓ Investments made to manufacture the products and parts designed and developed as an
outcome of the R&D Projects supported by the Ministry of Science, Industry and
Technology, TUBITAK and KOSGEB,
✓ Motorized land vehicles key industry investments with a minimum investment amount
of 300 million TL, automotive engine manufacturing investments with a minimum
amount of 75 million TL and transmission components/parts and automotive electronics
manufacturing investments,
✓ Investments made to generate electricity from coal,
✓ Investments made to generate electricity through waste heat recovery in a facility,
✓ Energy efficiency investments made in existing manufacturing facilities,
✓ Liquefied natural gas (LNG) investments and underground gas storage investments
with a minimum amount of 50 million TL,
✓ Investments of carbon fiber or the composite materials made from carbon fiber
provided that along with carbon fiber production.
✓ Investments made to manufacture high-technology products classified according to
OECD technology intensive definition.
✓ Investments made to explore mines in the permitted fields for the investors holding
Mining License and Certificate.
✓ Investments made to manufacture turbines and generators for renewable energy and
wind turbine wings for wind power.
✓ Integrated investments for aluminium flat products using direct chill slab casting and
hot rolling methods.
✓ Licensed warehousing investments.
✓ Nuclear power plant investments.
✓ Qualified laboratory investmentsGreenhouse investments based on automation with a minimum of 5 million TL, 25 decares and domestic spare parts
✓ Investments subject to Environmental License within the scope of Environmental
Permit and License Regulation. Elderly and Disabled care centers and wellness
investments
✓ Medium-high technology investments amounting to a minimum 500 million TL
✓ Investments in the production of software and information products to be made in
specialized free zones without requiring a minimum investment amount.
✓ R&D and environmental investments
✓ Manufacturing electric or hydrogen-powered transportation vehicles
✓ Qualified laboratory investments REPUBLIC OF TURKEY MINISTRY OF INDUSTRY AND TECHNOLOGY 6
✓ Greenhouse investments based on automation with a minimum of 5 million TL, 25 decares and domestic spare parts
✓ Investments subject to Environmental License within the scope of Environmental Permit and License Regulation. Elderly and Disabled care centers and wellness investments
✓ Medium-high technology investments amounting to a minimum 500 million TL
✓ Investments in the production of software and information products to be made in specialized free zones without requiring a minimum investment amount.
✓ R&D and environmental investments
✓ Manufacturing electric or hydrogen-powered transportation vehicles PRIORITY INVESTMENTS INCENTIVE SCHEME MEASURE
STRATEGIC INVESTMENT INCENTIVE SCHEME
The Goals:
✓ On the basis of the “Input Supply Strategy”, this scheme aims at supporting
production of intermediate and final products with high import dependence with a view to
reduce current account deficit.
✓ It also targets encouraging high-tech and high value added investments with a
potential of strengthening Turkey’s international competitiveness.
Investments meeting the criteria below are supported within the frame of the Strategic
Investment Incentive Scheme:
✓ to be made for production of intermediate and final goods with high import
dependence of which more than 50% of these goods are supplied by imports,
✓ to have a minimum investment amount of 50 million TL,
✓ to create minimum 40% value added (This condition is not applicable to refined
petroleum production investments and petrochemicals production investments),
✓ to have an import amount of at least $50 million for goods to be produced in the last
one-year period (This condition is not applicable to goods with no domestic
production)
The investments approved by the Ministry within the Technology Focused Industry
Movement Program (TFIMP) also be supported within the context of strategic
investments.
SUB-REGIONAL INCENTIVES
Following investments will benefit from more beneficial sub-regional rates and terms for Tax
Deduction and support to employer’s share of social security premium in any region:
• Investments in Organized Industrial Zones and Manufacturing Investments in
Specialized Industrial Zones,
• Joint Investments by multiple (at least 5) companies operating in the same sector which
establish integration to their activities.
• Selected medium-high-technology industries will benefit from terms and rates of the
support measures of Region 4 even if they are made in Regions 1 (except Istanbul), 2, 3.
However, in the organized industrial zones or industrial zones in Istanbul Province, the
regional supports in the 1st region are applied to the investments amounting to a
minimum of 5 million TL, excluding completely new investments.
• Investments to be made in the districts of the provinces of the 1st, 2nd, 3rd and 4th
regions included in Annex-7 of the Decision;
✓ From the regional supports provided to the sub-region of the province where the
district is located;
✓ Investments to be made in the OIZ / EZ of these districts benefit from the regional
supports provided to the two sub-regions of the province where they are located.
• 5 th region provinces;
✓ Regional supports provided to the 6th region for the investments to be made in the
districts included in ANNEX-7,
✓ For the investments to be made in the OIZ / EZ of these districts, Social Security
Premium Support (Employee’s Share), is applied by adding two years to the period
valid in the 6
th region; tax deduction support is applied by adding five points to the
investment contribution rate valid in 6
th region.
• Within the scope of these applications, income tax withholding support and Social
Security Premium Support (Employee’s Share) are not applied.
• Effective from January 1, 2021, supplement to the Decision for the districts that will
benefit from sub-regional supports, ANNEX-7:
Ankara
Çamlıdere
Bala
Haymana
Adana
Yumurtalık
İmamoğlu
Karataş
Karaisalı
Tufanbeyli
Aladağ
Feke
Saimbeyli
Afyonkarahisar
Kızılören
İhsaniye
Bayat
Sinanpaşa
Hocalar
Çobanlar
Aksaray
Ortaköy
Sarıyahşi
Eskil
Ağaçören
Güzelyurt
Gülağaç
Amasya
Göynücek
Hamamözü
Antalya
Gündoğmuş
Aydın
Kuyucak
Germencik
Karacasu
Sultanhisar
Köşk
Buharkent
Yenipazar
İncirliova
Bozdoğan
Koçarlı
Karpuzlu
Balıkesir
Savaştepe
Dursunbey
Sındırgı
Havran
Kepsut
İvrindi
Balya
Bartın
Kurucaşile
Bilecik
Gölpazarı
İnhisar
Yenipazar
Bolu
Yeniçağa
Mudurnu
Göynük
Seben
Kıbrısçık
Dörtdivan
Burdur
Kemer
Ağlasun
Cavdır
Çeltikçi
Yeşilova
Altınyayla
Bursa
Harmancık
Keles
Büyükorhan
Çanakkale
Bayramiç
Yenice
Çankırı
Bayramören
Çorum
Ortaköy
Boğazkale
Uğurludağ
Mecitözü
Bayat
Laçin
Denizli
Babadağ
Kale
Beyağaç
Baklan
Güney
Çameli
Düzce
Çilimli
Kaynaşlı
Cumayeri
Gölyaka
Yığılca
Edirne
Enez
İpsala
Meriç
Lalapaşa
Elazığ
Kovancılar
Karakocan
Alacakaya
Maden
Palu
Baskil
Sivrice
Arıcak
Erzincan
Otlukbeli
Tercan
Çayırlı
Erzurum
Horasan
Hınıs
Şenkaya
Çat
Köprüköy
Tekman
Karaçoban
Karayazı
Eskişehir
Alpu
Günyüzü
Han
Gaziantep
Nizip
İslahiye
Oğuzeli
Nurdağı
Karkamış
Araban
Yavuzeli
Hatay
Arsuz
Reyhanlı
Yayladağı
Hassa
Kumlu
Altınözü
Isparta
Şarkikaraağaç
Aksu
Gelendost
Sütçüler
İzmir
Bayındır
Beydağ
Kiraz
Karabük
Eskipazar
Yenice
Ovacık
Eflani
Karaman
Kazımkarabekir
Başyayla
Sarıveliler
Ayrancı
Kastamonu
Daday
Cide
İhsangazi
Hanönü
Azdavay
Pınarbaşı
Şenpazar
Doğanyurt
Kayseri
İncesu
Felahiye
Yahyalı
Bunyan
Yeşilhisar
Pınarbaşı
Sarıoğlan
Tomarza
Sarız
Akkışla
Kırıkkale
Karakeçili
Delice
Keskin
Sulakyurt
Balışeyh
Celebi
Kırklareli
Demirköy
Pehlivanköy
Kofçaz
Kırşehir
Akpınar
Çiçekdağı
Boztepe
Akçakent
Kilis
Musabeyli
Polateli
Konya
Kulu
Sarayönü
Hadim
Taşkent
Güneysınır
Hüyük
Kadınhanı
Doğanhisar
Tuzlukçu
Yalıhüyük
Bozkır
Derebucak
Altınekin
Çeltik
Yunak
Derbent
Halkapınar
Emirgazi
Ahırlı
Kütahya
Domaniç
Hisarcık
Şaphane
Pazarlar
Dumlupınar
Altıntaş
Çavdarhisar
Aslanapa
Malatya
Hekimhan
Doğanşehir
Akçadağ
Yazıhan
Doğanyol
Arguvan
Kuluncak
Kale
Pütürge
Manisa
Saruhanlı
Köprübaşı
Ahmetli
Gölmarmara
Selendi
Mersin
Aydıncık
Mut
Gülnar
Muğla
Seydikemer
Nevşehir
Derinkuyu
Acıgöl
Niğde
Altunhisar
Çiftlik
Osmaniye
Sumbas
Rize
Hemşin
Güneysu
İyidere
Derepazarı
İkizdere
Kalkandere
Çamlıhemşin
Sakarya
Kaynarca
Ferizli
Karapürçek
Taraklı
Samsun
Kavak
Havza
Alacam
Yakakent
Vezirköprü
Salıpazarı
Asarcık
Ayvacık
Sinop
Dikmen
Sivas
Akıncılar
Zara
Gölova
Kangal
Ulaş
Altınyayla
Hafik
Yıldızeli
Koyulhisar
Trabzon
Çarşıbaşı
Araklı
Şalpazarı
Dernekpazarı
Tonya
Köprübaşı
Hayrat
Düzköy
Uşak
Banaz
Karahallı
Sivaslı
Yozgat
Aydıncık
Zonguldak
Kilimli
Gökçebe