Turkey’s Project-Based Incentives Are in Force

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100% Corporate Tax exemption, Value Added Tax exception, and Custom Duty exemption in the import of machinery and equipment, free land allocation and many other incentives will be granted for eligible investments.

The “Law on Supporting Investments on Project-Basis … No. 6745,” intended to achieve innovative technology and higher value-added product investment by providing significant supports for innovative, R&D activities on project-basis, in order to get a sustainable economic growth rate and competitive capacity, has been issued in Official Gazette and is in force as of 7th September 2017.

 Projects to be Supported

The investment value of project at least 100 million $, that are meeting the country’s current or future critical needs, satisfying supply security of the goods whose supply capacity is inadequate in the country, increasing the technological capacity in the fields technological gap exist, reducing the dependency on import in the fields foreign trade deficit exist, providing high added value, ensuring production by using new generation technology country doesn’t have, increasing country’s competitive capacity, innovative and R&D based will be benefiting from the following government support;   

  

  • Corporate tax exemption up to 100%; corporate tax exception for the profits earned from the investment in the first ten years.
  • Free land allocation for 49 years in case the investment is realized on Treasury’s immovable property; and free transfer of such property in case of demand if the project realized the determined employment at least for 5 years.
  • Support on employer’s share of social security premium contribution for ten years.
  • 50% of energy consumption expenses of investment will be compensated up to 10 years.
  • Interest or grant support up to ten years for credits used in fixed investment.
  • Wage support for qualified employees who are of particular importance with regards to investment, up to 20 times of monthly gross minimum wage, and up to five years.
  • In case of transfer, the new investor will benefit from remaining parts of the supports and exemptions.
  • Customs duty exemption in the import of machinery and equipment.
  • Public procurement guarantee.
  • Support on Income tax withholding.
  • State partnership up to 49 percent.
  • Infrastructure support; all kind of infrastructural investment will be made where it is necessary for the eligible projects.
  • Exemption from the restrictions related to allocation, permits licenses and suchlike.

 

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