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Kadıköy, Istanbul
Encouraging investments is one of the most crucial tools for accelerating a country's economic development. The incentive system not only promotes the development of economically underdeveloped regions but also aims to increase employment, support domestic production, and encourage high-value-added and technological investments. The Investment Incentive Certificate is issued by the Ministry of Industry and Technology to support investments in priority sectors and strategic areas determined by the government.
The duration of the incentives varies depending on the project-based evaluation of the investments subject to the incentive certificate.
Applications are submitted to the Ministry of Industry and Technology through the Electronic Incentive Application and Foreign Capital Information System (E-TUYS). Investment expenditures made before the application date are not considered within the scope of the incentive certificate.
Investments aimed at manufacturing goods and services, including primary machinery and equipment as well as auxiliary facilities, and where necessary, land, building, and construction expenditures, without an existing facility engaged in the same production at the investment location.
Investments that involve adding production lines, machinery, and equipment to an existing investment to increase capacity while maintaining infrastructure continuity with the existing facility.
Investments that involve upgrading production lines in existing facilities by replacing outdated machinery and equipment, completing missing sections of the facility, improving the quality of the final product, or changing its model.
Investments that involve using the existing facility and infrastructure to introduce a new final product by adding additional machinery and equipment.
Investments that integrate forward or backward with an existing facility to produce complementary intermediate goods or use the produced final product as an intermediate good. These investments should generally be within the same province and within the same facility, except for integration investments.
Value-Added Tax (VAT) Exemption: No VAT is charged on investment goods, machinery, and equipment procured domestically or internationally, as well as software and intangible rights covered under the certificate.
Customs Duty Exemption: No customs duties are charged on investment goods, machinery, and equipment imported under the incentive certificate.
Tax Reduction: Income or corporate tax is applied at a reduced rate until the predetermined contribution amount for the investment is reached.
Employer’s Social Security Premium Support: The portion of the employer’s social security premium corresponding to the minimum wage for additional employment created under the incentive certificate is covered by the Ministry.
Employee’s Social Security Premium Support: The portion of the employee’s social security premium corresponding to the minimum wage for additional employment created under the incentive certificate is covered by the Ministry.
Interest or Profit Share Support: A portion of the interest or profit share payable on loans covering up to 70% of the fixed investment amount registered in the incentive certificate is subsidized.
Investment Land Allocation: Investment land is allocated for projects covered by an incentive certificate under the principles determined by the Ministry of Environment, Urbanization, and Climate Change.
VAT Refund: The VAT paid on building-construction expenditures for strategic investments exceeding 500 million Turkish Lira is refunded.
General Incentive Applications: These apply to investments that meet the minimum fixed investment amount requirement, are not included in the list of ineligible investments, and do not qualify for other incentive applications. Supported incentives include:
Regional Incentive Applications: Incentives vary based on the development level of the region.
Strategic Investments: Investments aimed at producing products with high import dependency.
The minimum fixed investment amount under the General Incentive System is 3 million TL in the 1st and 2nd regions and 1.5 million TL in the 3rd, 4th, 5th, and 6th regions.
For Regional Incentive Applications, the minimum fixed investment amount starts at 1 million TL in the 1st and 2nd regions and 1.5 million TL in the other regions, determined separately for each sector and province.
For Strategic Investments, the minimum fixed investment amount is 50 million TL.
The investment incentive system provides not only cost advantages but also a competitive edge in the business world. Leveraging incentives with the right strategy and planning contributes to the long-term growth of your business.
To analyze the most efficient ways for you to benefit from these supports, you can contact us. By assessing your current capacity and investment plans, we can chart a solid path to achieving your growth goals.
On this journey to support and assist businesses, you can take advantage of our competitive pricing policy, extensive knowledge, and expertise.
