Tax Reduction

In investments to be made within the scope of regional incentive practices, income or corporate tax is applied at certain rates within the framework of Article 32 / A of Law No.5520 until it reaches the amount of contribution to the projected investment.

The tax reduction rate to be applied in all regions for strategic investments is ninety percent and the rate of contribution to investment is 50 percent.

In the application of this article, the investment contribution amount refers to the amount of the investments to be covered by the State through the tax withheld from the collection by applying reduced income or corporate tax, and the rate to be found by dividing this amount into the total investment is the contribution rate to the investment.

Reduced income or corporate tax may be applied to the earnings of the investor from other activities during the investment period, not exceeding the amount of investment expenditure realized and not exceeding eighty percent of the total investment contribution amount, deducting the amount of contribution to the investment to be calculated according to this article.

Land, land, royalty, spare parts and other expenditures not subject to depreciation, institutions and business partnerships operating in finance and insurance pursuant to Law No. 5520, Law No. 4283 on the Establishment and Operation of Electrical Energy Production Facilities and the Regulation of Energy Sales Investments made within the scope of Law No. 3996 on Making Certain Investments and Services within the Framework of Build-Operate-Transfer Model and investments made under royalty contracts cannot benefit from tax reduction support.

Reduced rates are not applied in taxation through withholding.

Tax reduction support is applied by adding 10 points to the investment contribution rate valid in the 5th region, for the priority investments defined in Article 17 of this Decree and those with a fixed investment amount of 1 billion Turkish Liras and above.

Insurance Premium Employer’s Share Support Of the investments supported within the scope of strategic investments and regional incentive practices, provided that they do not exceed the employment registered in the incentive certificate with a completion visa:

1. In complete new investments, provided by the investment realized within the scope of the incentive certificate.
   
   
2. In other types of investments, following the completion of the investment, in the last six months before the investment start date (seasonal employment averages of the previous year are taken into account in investments with seasonal characteristics), the monthly premium given to the Social Security Institution and the average number of workers reported in the service document within the scope of the incentive certificate The part corresponding to the minimum wage of the employer’s share of the insurance premium, which is added with the investment and which must be paid for employment, is covered from the Ministry budget.

In strategic investments, the amount of insurance premium employer’s share support cannot exceed fifteen percent of the fixed investment amount in regions 1, 2, 3, 4 and 5. This restriction does not apply to strategic investments that are decided to be supported under the Technology Oriented Industry Move Program.

In order to meet the premiums of the employer’s share, employers must submit their monthly premium and service documents to the Social Security Institution within the legal period in accordance with the Social Insurance and General Health Insurance Law No.5510 of 31/5/2006 and the insurance premiums belonging to all insureds correspond to the insured share. and the amount of the employer’s share not covered by the Ministry must be paid within the legal period. In the event that the premiums due to be paid by the employer are paid late, the delay increase arising from the delay of the payment to be made from the Ministry to the Social Security Institution is collected from the employer.

The portion corresponding to the minimum wage of the employer’s share of the insurance premium to be paid for the workers employed in the construction of the ship, which is the subject of the certificate, without the requirement for completion visa in shipbuilding investments of shipyards supported within the scope of general incentive applications, may be covered by the Ministry. This support is applied for a maximum of eighteen months from the start of the investment even if the shipbuilding continues. However, for projects to be realized based on the contract signed with the Defense Industry Presidency, including investments with an ongoing investment period and contracts, this support is applied from the date of starting the investment until the end of the contract period. Yachts, floating facilities and sea vehicles are also considered within this scope. In mineral exploration investments.

In the facility belonging to the investment within the scope of the incentive certificate where this support will be applied, the number of workers employed by the sub-employers specified in the relevant legislation under the employer’s social security workplace number can also be taken into account.

The procedures and principles regarding the transfers to be made to the Social Security Institution are determined by the Ministry.

Insurance Premium Support

In accordance with this Decision in the 6th zone; Within the scope of strategic investments and regional incentive practices, for the additional employment provided by the investment based on the incentive certificate, provided that it does not exceed the number of employment registered in the incentive certificate with the completion visa, the part corresponding to the minimum wage of the insurance premium employee share, which must be paid by the employer to the Social Security Institution, can be covered by the Ministry budget on behalf of the employer for a year. (Annex: RG-8/8 / 2019-30855) This support is paid for the strategic investments decided to be supported within the scope of the Technology Oriented Industry Move Program, in regions other than the 6th region, if the product subject to the investment is at the high technology level, can be provided for years.

In order to benefit from this support, the monthly premium and service documents must be submitted to the Social Security Institution within the legal period and the amount of the employee’s share not covered by the Ministry must be paid within the legal period. If the premiums to be paid by the investor benefiting from this support are paid late, the delay increase arising from the delay of the payment to be made from the Ministry to the Social Security Institution is collected from the employer.

The provision in the eighth paragraph of Article 12 can also be applied for insurance premium support.

Income Tax Withholding Support

In accordance with this Decision, for the additional employment provided by the investments to be made within the scope of the incentive certificates issued for the strategic investments decided to be supported within the scope of the 6th Region and / or Technology Oriented Industry Move Program, the income tax calculated on the part of the workers’ wages corresponding to the minimum wage, provided that they do not exceed the number of registered employment in the certificate. is waived from the tax accrued on the withholding tax return to be filed for ten years from the date the investment is partially or fully operational. For strategic investments that are decided to be supported within the scope of the Technology Oriented Industry Move Program, this support is applied to a maximum of five hundred employees if the product subject to investment is at the high technology level, and a maximum of three hundred employees for others.

In the event that the investment cannot be completed or the incentive certificate is canceled, the taxes canceled due to the application of income tax withholding support are collected together with the delay interest without the tax loss penalty.

In case of transfer of the investment before it starts operating, the transferee benefits from the income tax withholding support provided that the same conditions are met.

In the event that the investment is transferred after it is partially or fully operational, the transferee shall benefit from the income tax withholding support until the transfer date, and the transferee for the remaining period after the transfer date.

Interest Or Dividend Support

If requested, the interest or dividend to be paid for the part up to seventy percent of the fixed investment amount registered in the incentive certificate of investment loans with a maturity of at least one year from banks for investments that will benefit from support within the scope of regional incentive applications and strategic investments and R&D and environmental investments:

1. Three points in Turkish Lira loans for regional investments to be made in the 3rd region, one point in foreign currency loans and foreign currency indexed loans.
   
   
2. Four points in Turkish Lira loans for regional investments to be made in the 4th region, one point in foreign currency loans and foreign currency indexed loans.
   
   
3. Five points for Turkish Lira loans for regional investments to be made in the 5th region, two points for foreign currency loans and foreign currency indexed loans.
   
   
4. Seven points in Turkish Lira loans for regional investments to be made in the 6th region, two points in foreign currency loans and foreign currency indexed loans.
   
   
5. For strategic investments that are decided to be supported within the scope of the Technology Oriented Industry Move Program to be carried out in all regions regardless of the region, ten points in Turkish Lira loans if the product subject to investment is at the high technology level, eight points in others, two points in foreign currency loans and FX indexed loans five points in Turkish Lira loans for other strategic investments, R&D investments and environmental investments, two points in foreign currency loans and foreign currency indexed loans.

The amount of interest or dividend support does not exceed one million Turkish Liras in R&D and environmental investments, twenty percent of the fixed investment amount in the strategic investments decided to be supported under the Technology Oriented Industry Move Program, and not exceed 5 percent of the fixed investment amount in other strategic investments, regardless of the region. provided that it cannot exceed fifty million Turkish Liras.

1. For investments within the scope of subparagraphs (t) and (u) of the first paragraph of Article 17, provided that the amount of interest or dividend support is not less than the amount of interest or dividend support specified in the third paragraph and does not exceed twenty percent of the fixed investment amount, seven points in Turkish Lira loans , three points in foreign currency and foreign currency indexed loans.
   
   

If deemed appropriate by the Ministry, it can be covered from the budget resources, provided that the maximum first ten years in investments falling within the scope of subparagraph (u) of the first paragraph of Article 17, and maximum first five years in other investments.

(2) Among the investments that are subject to incentive certificates including interest or dividend support, interest or dividend support can be envisaged under the same conditions, provided that a redemption plan including interest or dividend payments is made for those investments to be realized through financial leasing method.

The amount of interest or dividend support to be provided on a project basis in investments to be made within the scope of regional incentive applications will be 1 million, one million two hundred thousand, one million four hundred thousand and one million eight hundred thousand Turkish Liras, respectively in the 3rd, 4th, 5th and 6th regions. cannot pass.

The amount of interest or dividend support cannot exceed one million Turkish Liras in R&D and environmental investments, and fifty million Turkish Liras, provided that it does not exceed five percent of the fixed investment amount in strategic investments, regardless of the region.

Foreign currency loans with interest or dividend investment in support of the application will be held, the Central Bank of the Republic of Turkey on the maturity date is done considering selling exchange rate.

Interest or dividend support is not applied for used machinery and equipment and for investments to be made by public institutions and organizations, including state economic enterprises, and professional organizations that qualify as public institutions.

More than one brokerage house cannot request interest or dividend support for the investment covered by the same incentive certificate. However, more than one brokerage house may request interest or dividend support for strategic investments.

If the interest, dividend or principal of the used loans are not paid back by the investor within the periods specified in the redemption plans, the first unpaid payment is notified to the Ministry by the relevant intermediary institution as soon as possible and the Ministry stops the payments of interest or dividend support. In the event that the relevant intermediary institution informs the Ministry that the investor has fulfilled its loan repayment obligations, the interest or dividend support payments for the periods following the notification are restarted without any extension on the initially stipulated payment dates. If the obligations of loan repayment are interrupted again, the payment of interest or dividend support is terminated.

If the investment within the scope of the incentive certificate is transferred to another investor, if interest or dividend support is foreseen in the incentive certificate of the transferee investor and it is deemed appropriate by the intermediary institution, for the new investor according to the new amortization plan to be issued for the remaining loan without changing the maturity, amount and similar conditions in the old redemption plan. Interest or dividend support continues to be paid. Otherwise, the application of interest or dividend support is suspended.

The brokerage house is obliged to provide the loan, which is the basis for the interest or dividend support, for the expenses within the scope of the incentive certificate. If it is determined that the loan has been used outside of its purpose, the amount to be determined by the Bank by applying the interest or dividend rate applied by the relevant bank to the loan within this scope, on the amount of interest or dividend support paid by the Ministry, and the amount of interest or dividend support paid by financial leasing companies in the preparation of the redemption plan or The amount determined over the dividend must be deposited into the account of the accounting unit within five working days to be written as revenue in the budget. Otherwise, the said amounts by the Ministry;

1. For banks from the reserve account at the Central Bank of the Republic of Turkey made a wire transfer or using other legal methods.
   
   
2. For financial leasing companies, by applying the provisions of the Law on Collection Procedure of Public Receivables dated 21/7/1953 and numbered 6183, taken back.
   
   

When the interest or dividend rates applied by the brokerage houses fall below the Interest or dividend support score determined by regions, the rate applied by the brokerage house is taken into account.

Investment Site Support

For strategic investments with an incentive certificate issued by the Ministry and investments that will benefit from regional supports, an investment location may be allocated in accordance with the procedures and principles determined by the Ministry of Environment and Urbanization within the framework of the additional article 3 of the Law No. 4706 dated 29/6/2001.

Investment place is not allocated to investments specified in the sixth paragraph of Article 15.

Value Added Tax Refund

In accordance with the Value Added Tax Law dated 25/10/1984 and numbered 3065, the import and domestic deliveries of machinery and equipment to be made within the scope of the incentive certificate to the investors holding the incentive certificate, and the sales and leasing of software and intangible rights within the scope of the certificate may be exempted from VAT. The same provision, incentive certificate or the scope of the incentive certificate is included in the transfer operations of machinery and equipment and in the machinery and equipment lists, set, unit, set etc. It is also applied for partial deliveries of the goods specified as.

Building-construction expenses to be made within the scope of strategic investments with a fixed investment amount of more than five hundred million Turkish Liras can benefit from VAT refund.

The following investment issues will be supported by the support provided to a sub-region of the region where the investment is located:

Investments to be made in OIZs,

• Investments to be carried out by companies operating in the same sector together and that will provide vertical horizontal integration to the investment subject to be operated,
• Investments for the manufacturing industry to be realized in the industrial zone.