In this article, we write about state’s investment incentives for foreign investors.

In 2022’s Turkey, there are lots of opportunities to chase in dynamic Turkish market and it is appealing to both Turkish people and Foreign. As foreign, people have decent incentives in scope of investments and as there are many, we could only converse titles that is sufficient to attract attention. Here are some of exceptions, deductions and supports;

Corporate Tax Reduction: Corporate tax is paid with reduction

R&D/Design Discount: R&D and design expenditures are wholly deductible from the corporate tax base

VAT Exemption: Value-Added Tax will not be paid for machinery and equipment to be purchased

Customs Duty Exemption: Customs duty will not be paid for machinery and equipment to be supplied from abroad

VAT Refund: VAT refund is provided for building and construction expenditures

Income Tax Withholding Support: The income tax determined for employment will be exempt

Special Consumption Tax Exemption: Enterprises in free zones are exempt from special consumption tax

Land Allocation: Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization

Infrastructure Support: Investor’s infrastructural needs such as electricity, natural gas, etc. can be covered

Qualified Personnel Support: Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)

Cash Support: Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid

Not limited to above-mentioned incentives, there are plenty of incentives waiting for foreigners. As an example: in extent of General Investment Incentives, if you put 1.000.000 TRY (about 69.000 USD on the currency rate of 28.02.2022) as Fixed investment amount and buy machinery for your production facility, the VAT amount you have to pay will be exempted. This means you will not have to pay a VAT amount of 144.000 TRY (about 10.000 USD on the currency rate of 28.02.2022). Depending the amount, incentives such as exemption, reduction and support are increasing.

As this was just an example, more incentives and opportunities are waiting for you in Türkiye.

The information provided in this article is general and does not constitute financial, tax or legal advice. If you seek legal advice, we are always pleased if you contact us.