Investment Incentives in Turkey
Incentives or guarantees
- Forms of Aid
Companies benefit from a tax reduction of 40% for any amount invested. Exporting companies benefit from exemption from Customs duties, VAT and partial exemption from Corporate tax. The Treasury is the organization in charge of promoting international investment. It must be contacted for full information about the framework of investment in Turkey.
Within the framework of its rapprochement with the European Union, Turkey has begun a process of harmonization of its financial incentives with the requirements of Brussels. Thus, the main aim of encouraging investment is to reduce regional imbalances.
- Privileged Domains
- There are 23 technoparks in Turkey (Teknoloji Gelistirme Bölgeleri - TGB) managed by the General Directorate of Research and Development, itself attached to the Ministry of Commerce and Industry. R&D activities as well as research activities in the IT field, carried out in these areas of technological development, are exempted from IS until the end of 2013.
- Privileged geographical sectors
There is also aid for regional industrial development. The country has classified its regions in three categories: developed regions, regions called normal, and those whose development is judged to be a priority.
The General Directorate of Incentives and Implementation (GDII), a department of the Undersecretariat to theTreasury based in Ankara, accords notions of special importance to more particular areas.
- Privileged Geographical Zones
- There are 20 free zones in Turkey, 7 of which are in the region of Marmara, and each one has a determined sector of activitiy.. Fiscal incentives in these zones have been in effect since February 2004. Companies which have set up business there benefit from 100% exemption from duties, taxes and VAT linked to import operations and total exemption from IS.
- Country Risk
Tax incentives offered to foreign investors
- Special tax treatments
- Various tax incentives in the form of partial exemptions are available in Turkey, in particular for R&D centres set-up outside current technology development zones. In development zones, income derived from software development and R&D are exempt from corporate tax through 31 December 2013. Companies operating from Free Trade Zones also benefit from exemptions. For more information on tax incentive programs you can consult the Revenue Administration.
- Useful Links
Invest in Turkey
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