Due to globalization, dynamics of economy have changed all over the world. Foreign investment has become a popular issue for states. In this manner, states started to regulate foreign investment. The aim is making attractive opportunities for foreign investors. Investment incentives sheme is specifically designed to encourage investments to reduce dependency on the importation. 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 (Please see our related article…)
- Strategic Investment Incentive Scheme (Please see our related article…)
- Priority Investments Incentıve Scheme (Please see our related article…)
- Large Scale Investment Incentive Scheme (Please see our related article…)
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. General Investment Incentive Scheme is explained in details in this article.
Regardless of region where investment is made, the scheme is available for all investment projects provided that:
- Exclude of investment subject from the investment incentives programs,
- Requirement of minimum fixed investment amount.
As being supported from the General Investment Incentives sheme, the investment projects will benefit only from customs duty and VAT exemptions on their machinery and equipment expenditures. As a novelty in the new program, additionally income tax withholding allowance will be available on portions of labor wages corresponding to amount of legal minimum wage if investment is made in Region 6. The amount of minimum fixed investment is 1 million TL in Region 1 and 2 and 500 thousand TL in Regions 3, 4, 5 and 6. (Please see the regions table…)
Hukuk Desteği (Legal Support)
Very great post. thank you!