| GRANTED
TO THE ENTERPRISES IN TURKEY |
|
1 |
The General Incentive
Scheme |
All investment activities
which envisage a fixed investment of at least
YTL 200,000 in the Priority Development Regions
(or at least YTL 400,000 in the other regions)
are granted incentives.
Investors are exempt from
customs duties and levies
when they import the machinery
and equipments shown in the attachment
of their incentive certificates provided by
the relevant authorities.
Moreover, they are exempt
from VAT when they import
or domestically purchase the machinery
and equipments in question.
Investment and
operational credits under more reasonable
conditions than the market conditions are
also granted.
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here for further information>>
2 |
Incentives Granted to Small
and Medium Sized Enterprises (SMSEs) |
SMSEs, the companies
with less than 250 employees, which make a
fixed investment of at most YTL 950,000 are
granted incentives.
The tax incentives in
this scheme are the same as those in the general
scheme.
However, investment
and operational credits differ from
those envisaged by the general scheme.
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here for further information>>
3 |
Incentives pursuant to the Law
No. 5084 |
According to the “Employment
Encouragement in the Underdeveloped Regions”
Law (No. 5084), the enterprises which operate
in the (36) provinces where income per capita
was less than $1,500 in year 2001 are granted
the designated incentives when they increase
the number of their employees.
These incentives include;
o Exemption
from 80%-to-100% of both income
tax and social insurance contributions
(employer’s share) to be calculated
out of the minimum wage for each additional
employee,
o Energy subsidies
amounting to 20%-to-50% of “the
total energy costs to be billed by the suppliers”
for the integrated animal breeding &
butchery & milk (or egg) enterprises,
some selected agro-industrial companies
and freezing-warehousing companies which
increase the number of their employees,
o Land provision
by the Treasury or local governments at
very reasonable costs in case no space is
left in the Organised Industrial Zones and
Industrial Zones.
5 |
Incentives for the Free Trade
Zones |
The Free Trade Zones (FTZ),
which are the export-oriented special industrial
sites, are granted the following tax incentives:
o Production companies
in an FTZ are exempt from
both corporate and income
taxes.
o Goods imported from
abroad are exempt from customs duty.
In addition, there are no restrictions
on the age/model of machinery to
be imported from abroad, and these items
are exempt from both VAT
and customs duty.
o Goods purchased in
Turkey by companies located in an FTZ are
exempt from VAT.
o Companies based in
an FTZ can keep their products in a designated
duty-free storage area
for an indefinite period of time and they
can export the products in lots at any time
(at the time of export, a customs duty for
the lots is paid).
o Energy, water and
telephone utilities supplied
within a zone are all exempt from
special consumption tax (OTV) and
VAT.
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here for further information>>
6 |
Incentives for the Technology
Development Zones |
For the Technology Development
Zones (TDZ), the special techno-parks in which
high-tech or high-tech-targeting/R&D companies
operate, the following incentives are provided:
o Participating companies
are exempt from income and corporate
taxes for 5-to-10 years.
o Within the framework
of sponsorship, donations
to be granted to R&D firms operating
in a TDZ enable the sponsor to be granted
tax discounts.
o TDZs with water treatment
facilities are exempt from “water-refusal
levy” imposed by municipalities.
o Depending on the sufficiency
of budgetary allocations, some of the costs
relating to land acquisition, infrastructure,
and the construction of the administrative
buildings can be financed
by the Ministry of Industry and Trade.
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here for further information>>
7 |
Incentives for the Organised
Industrial and Industrial Zones |
Enterprises which employ
new employees and that participate in the
Organised Industrial Zones or Industrial Zones
in the underdeveloped provinces determined
by Law No 5084 are subject to comparatively
much higher amount of incentives than the
other companies in those provinces.
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here for further information>>
o Aids
with regards to the ‘Turquality Certificate’
(a certificate granted to the selected products
of exporters) holders, www.dtm.gov.tr
o Supports
pursuant to Communique No. 2003/3 regarding
the creation of well-known and prestigious
trademarks/brands among Turkish export products,
o Research
and Development assistance to exporters,
o Subsidisation
of the participation costs of exporters
in the fairs and exhibitions held abroad,
o Subsidisation
of international fairs held in Turkey,
o Subsidisation
of some environmental costs of the exporters,
o Aids
with regards to market research,
o Training
assistance,
o Employment
assistance,
o Aids
for establishing branches and brand/trademark
advertisements abroad,
o Tax,
duty and levy exemptions for export-based
and foreign-exchange denominated revenues.
For further information
regarding export issues, please contact the
Office of the First Commercial Counsellor
at the Turkish Embassy in London through
Tel: 020 7235 4991
Fax: 020 7235 2207
E-mail: dtlon@turkishtrade.org.uk
