Turkey is an attractive country for foreign investors due to the legislations offered many opportunities for foreign investors. One of the important opportunities is various investment incentives that encourage, support and orient investments in order to reduce regional disparities within the country. The other purpose of investment incentive is to create new employment opportunities.
The recent invesment incentive system in Turkey contains five sort of invesment schemes;
- Regional Investment Incentive Scheme
- General Investment Incentive Scheme
- Priority Investments Incentıve Scheme (Please see our related article…)
- Strategic Investment Incentive Scheme
- Large Scale Investment Incentive Scheme
These are the five different support shemes that have been regulated in the new investment incentive regime. The system includes incentives that called support measures. These incentive tools generally contains; 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. Large Scale Investment Incentive Scheme is explained in details in this article.
Large Scale Investment Incentive Scheme supports investments which will potentially increase Turkey’s technology, research and development capacity and competitiveness. Large Scale Investment Incentive Scheme offers more advantageous supports than those for the Regional Investment Incentive Scheme.
In the scope of Large Scale Investment Incentive Scheme, the investments in organized industrial zones can benefit from additional supports through tax deduction and SSP support for employers’ share. Tax deduction and SSP support for employers’ share rates vary by Region. Investments in Regions 5 and 6 are offered more advantageous rates than those for others.
A certain of the contribution rate to the investment through tax deduction provided by Large Scale Investment Incentive Scheme can be applied at different rates in different regions before the investment is completed, as those applied with Priortiy Investment Scheme.
In order for an investment benefits from Large Scale Investment Incentive Scheme, an investor must spend minimum 5 million TL (Turkish Liras) for land, infrastructure, building-construction, machinery, equipment and other expense items.
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