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INCENTIVES OF STRATEGIC
INVESTMENTS

INCENTIVES OF STRATEGIC INVESTMENTS

Investments for the production of intermediate goods or products with high import dependence are supported within the scope of strategic investment incentive practices. Investments to be supported in this context must meet all of the following criteria.

  • The minimum fixed investment amount is 50 million TL.
  • Total domestic production capacity related to the product subject to investment is less than imports.
  • The value added provided by the investment must be at least 40% (this requirement will not be required for refinery and petrochemical investments).
  • The total import value of the product to be produced is at least $ 50 million as of the last 1 year.


Investments approved by the Ministry within the scope of the Technology Oriented Industry Move Program (TOSHP) can also be supported within the scope of strategic investments.

Support rates and durations provided within the scope of this application are summarized in the table below.

SUPPORT ELEMENTS FOR STRATEGIC INVESTMENTS.

SUPPORT ELEMENTS REGIONS
1. 2. 3. 4. 5. 6.
VAT Exemption THERE IS
Customs Duty Exemption THERE IS
Tax Reduction Investment Contribution Rate * (%) 50
Insurance Premium Employer’s Share Support Support Period 7 years (10 years in the 6th zone)
Investment Place Allocation THERE IS
Interest or Dividend Support Internal Loan 5 Points (10 points for high-tech product within the scope of TOSHP, 8 points for others)
Foreign Currency / Foreign Currency Indexed Loan 2 Points
Insurance Premium (Workers’ Share) Support 10 years (Investments to be made only in the 6th region) 7 years in high-tech products within the scope of TOSHP in other regions, 5 years in others)
Income Tax Withholding Support 10 years (Investments to be made only in the 6th region and strategic investments supported under TOSHP)
VAT Refund YES (Only for investments of 500 million TL and above)

* Within the scope of investment incentive certificates issued for the manufacturing industry (US-97 Code: 15-37), the investment contribution rate for investment expenditures to be made between 1/1/2017 and 31/12/2022, by adding 15 points to the current rate, tax reduction the rate is 100% and the rate of the investment contribution amount that can be used during the investment period is 100%.

** For investments that are strategically supported within the scope of TOSHP, if the product is high-tech, it can be applied to a maximum of 500 employees, and for others a maximum of 300 employees.

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