indir (28)Due to changing the dynamics of economy all over the world, states has started to make an effort controlling the way of capital flow over their countries. Therefore, the states have set the legal framework of Foreign Direct Invesment by establishment of new regulations or reforming the existing ones. In line with this idea, Foreign Direct Invesment Law (“FDI”) has restricted by law numbered 4875 and dated 17.06.2003 in Turkey. FDI includes 7 articles that explain the most of issues about Foreign Direct Invesment in Turkey. (Please see our related articles…)

On the other hand, states aim to develop a strategy to attract attention of foreign direct invesment over their countries. In the purpose of managing and supporting these invesments, countries started to use tax and similar fiscal charges, subsidies, supports and free land locations in generally. As a natural consequence, Turkey also has an incentive regime for over the last decades. Besides that, there have been amendments in the incentive system in an attempt to be in compliance with the practices of whole world. The information contained in this article is an explanation for the investors who need to have a view about incentives in Turkey.

The recent invesment incentive system comprises four sort of invesment schemes;

These are the four different support shemes under the new regime. The incentive tools generally contain; income tax withholding support, vat refund, free land allocation, social security premium support (employer’s share), social security premium support (employee’s share), tax deduction, customs duty exemptions and interest support.

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