Due to globalization, the whole world is integrated in a one global market and the national economies are integrated with the world economy, thus the economic relations between the countries are intensified. This circumstance encourage countries to make legal regulations and provide incentives to attract foreign investment. Therefore, Turkey has set the legal framework of Investment Intencives to attract attention over foreign investment.
The recent invesment incentive system contains five sort of invesment schemes;
- General Investment Incentive Scheme
- Regional Investment Incentive Scheme
- Strategic Investment Incentive Scheme
- Priority Investments Incentıve Scheme
- Large Scale Investment Incentive Scheme
These are the five different support shemes that have been settled in the new investment incentive regime. The system includes incentives that called support measures. These 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 (Please see our related articles…). The information contained in this article is an explanation for the investors who need to have an idea about five kind of investment shemes in Turkey. Priority Investment Incentive Scheme is explained in details in this article.
With supports are provided by Priority Investment Incentives sheme, the investment projects will benefit tax deducation, SSP rate supports (for employer’s share) and interest rate supports up to 900 thousands Turkish Liras.
“Priority Investments” can benefit from regional supports extended to Region 5 by the “Regional Investment Incentive Scheme” regardless of the region of investment. In addition to this, priority investments in Region 1, 2, 3, 4 and 5 benefit from supports which provided by incentive at the same rates and terms. There are more advantageous incentives offered to the priority investments made in organized industrial zones in Region 5 and those made in or out of organized industrial zones in Region 6.
A certain part of tax deduction provided by Incentive Scheme for Priority Investments can be used before the investment is completed. A part of tax deducation is offered at different rates by regions. These rates are; %50 for investments in Regions 1, 2, 3, 4, 5 and %80 for investments in Region 6 (Please see the regions table…)
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