INCENTIVES GUIDE

INCENTIVES INSTRUMENTS

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Corporate Tax Reduction

Corporate tax is paid with reduction.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government.

Land Allocation

Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.

VAT Exemption for Construction

Construction expenses are exempt from Value-Added Tax (VAT).

Infrastructure Support

Investor's infrastructural needs such as electricity, natural gas, etc. can be covered.

Energy Support

Energy expenditures will be partially rebated to the investor.

Capital Contribution Support

Government can make capital contribution of up to 49% of the investment amount.

Purchasing Guarantee

Public purchase guarantee can be provided for products to be produced within the scope of the investment.

Facilitation of Authorization/ Permit/ License Procedures

An exception may be introduced by virtue of a presidential decree for authorizations, allocation, permits, licenses and registrations among other restrictive provisions.

Training Support

Daily expenses and eligible training costs will be covered by İŞKUR.

Qualified Personnel Support

Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)

R&D/Design Discount

R&D and design expenditures are wholly deductible from the corporate tax base.

Corporate Tax Exemption

No corporate tax is payable.

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

Credit Support

Credit opportunities with reduced rates are provided to investors to improve exportation.

Special Consumption Tax Exemption

Enterprises in free zones are exempt from special consumption tax.

Property Tax Exemption

No property tax is payable for land and buildings.

Stamp Duty Exemption

No stamp duty is payable for documents.

TYPES OF INCENTIVES

INVESTMENT INCENTIVES

General Investment Incentives Scheme

Tax exemption for procurement of machinery and equipment, regardless of the investment region.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Regional Investment Incentives Scheme

Higher incentives for investments to be made in less developed regions. (including Priority Investment Incentives that offer incentives regardless of the investment region for manufacturing of medium-high tech and high-tech products)

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Corporate Tax Reduction

Corporate tax is paid with reduction.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government.

Land Allocation

Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.

VAT Exemption for Construction

Construction expenses are exempt from Value-Added Tax (VAT).

Property Tax Exemption

No property tax is payable for land and buildings.

Strategic Investment Incentives Scheme

High incentives in areas with high importation.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Corporate Tax Reduction

Corporate tax is paid with reduction.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government.

Land Allocation

Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.

VAT Exemption for Construction

Construction expenses are exempt from Value-Added Tax (VAT).

Property Tax Exemption

No property tax is payable for land and buildings.

Project-Based Investment Incentives

Tailor-made incentives for areas with critical importance for Türkiye.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Corporate Tax Reduction

Corporate tax is paid with reduction.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government.

Land Allocation

Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization.

VAT Exemption for Construction

Construction expenses are exempt from Value-Added Tax (VAT).

Infrastructure Support

Investor's infrastructural needs such as electricity, natural gas, etc. can be covered.

Energy Support

Energy expenditures will be partially rebated to the investor.

Capital Contribution Support

Government can make capital contribution of up to 49% of the investment amount.

Purchasing Guarantee

Public purchase guarantee can be provided for products to be produced within the scope of the investment.

Facilitation of Authorization/ Permit/ License Procedures

An exception may be introduced by virtue of a presidential decree for authorizations, allocation, permits, licenses and registrations among other restrictive provisions.

Qualified Personnel Support

Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

Property Tax Exemption

No property tax is payable for land and buildings.

Other State Support (including KOSGEB)

Grant and loan opportunities for SMEs.

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government.

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

Other State Support (including Regional Development Agencies)

Development Agencies provide grant supports for certain investment areas in order to boost their regional development and competitiveness.

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

EMPLOYMENT INCENTIVES

Employment Supports

Tax exemptions and cashback supports for employment and personnel training.

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government.

Training Support

Daily expenses and eligible training costs will be covered by İŞKUR.

R&D AND DESIGN INCENTIVES

R&D Law

Tax benefits for R&D centers and design centers.

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

R&D/Design Discount

R&D and design expenditures are wholly deductible from the corporate tax base.

Stamp Duty Exemption

No stamp duty is payable for documents.

Technology Development Zones Incentives

Tax benefits for companies that are located in Technoparks.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Corporate Tax Exemption

No corporate tax is payable.

Stamp Duty Exemption

No stamp duty is payable for documents.

TUBITAK

Grant opportunities for research, technology development, and innovation activities.

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

REGIONAL MANAGEMENT CENTER INCENTIVES

Incentives for Regional Management Centers & Liaison Offices

Tax advantages for international companies that move their regional management centers to Türkiye.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Stamp Duty Exemption

No stamp duty is payable for documents.

EXPORT INCENTIVES

Export Support Instruments by the Ministry of Trade

Tax exemptions and cashback supports in order to increase Türkiye’s exports.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Cashback Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid.

Special Consumption Tax Exemption

Enterprises in free zones are exempt from special consumption tax.

Stamp Duty Exemption

No stamp duty is payable for documents.

Free Zones Incentives

Free Zones offer tax benefits especially for export-oriented investments.

VAT Exemption for Machinery

Purchased machinery and equipment are exempt from Value-Added Tax (VAT).

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad.

Income Tax Withholding Support

The income tax determined for employment will be exempt.

Corporate Tax Exemption

No corporate tax is payable.

Special Consumption Tax Exemption

Enterprises in free zones are exempt from special consumption tax.

Property Tax Exemption

No property tax is payable for land and buildings.

Stamp Duty Exemption

No stamp duty is payable for documents.

Eximbank

Credit opportunities to increase Türkiye’s exports.

Credit Support

Credit opportunities with reduced rates are provided to investors to improve exportation.

GLOBAL COMPANIES BENEFITING FROM INCENTIVES

QUICK LINKS

RECOMMENDED PAGES

INCENTIVES GUIDE

INCENTIVES INSTRUMENTS

TYPES OF INCENTIVES

INVESTMENT INCENTIVES

General Investment Incentives Scheme

Regional Investment Incentives Scheme

Strategic Investment Incentives Scheme

Project-Based Investment Incentives

Other State Support (including KOSGEB)

Other State Support (including Regional Development Agencies)

EMPLOYMENT INCENTIVES

Employment Supports

R&D AND DESIGN INCENTIVES

R&D Law

Technology Development Zones Incentives

TUBITAK

REGIONAL MANAGEMENT CENTER INCENTIVES

Incentives for Regional Management Centers & Liaison Offices

EXPORT INCENTIVES

Export Support Instruments by the Ministry of Trade

Free Zones Incentives

Eximbank

GLOBAL COMPANIES BENEFITING FROM INCENTIVES

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