With the last century, the technology has improved itself overmuch. Therefore, the links between different countries’ economies have made a considerable growth all over the world. Due to these changes in the world’s economic system, each state has started to work on driving the capital flow over their country. In line with this idea, most of government started to regulate about foreign investment issues. Invesment Incentive System is one of the most accepted way to attract attention of foreign investors. At this point, Turkey has developed the Investment Incentive System, which offers various opportunities for foreign investors.

The system aims to boost technology transfer, increase the investment at less developed regions, and decrease the import dependency at strategic sectors. To achieve these goals, Investment Intencive System provides better opportunities called support measures.

One of these support measures is Income Tax Withholding Allowance for foreign investment. The measure stipulates that the income tax regarding the additional employment generated by the investment within the scope of the investment encouragement certificate will not be liable to withholding. The measure is applicable only for the investments to be made in Region 6 within the scope of an investment encouragement certificate. (Please see our related articles…) This measure is available only for Region 6 and for ten years in the meantime.

Foreign investments have chance to use Land Allocation which is provided by the government as a support measure. The Investment Incentive Certificate is required to apply allocation of land (Region 6) that was mentioned above in accordance with the rules and principles determined by the Ministry of Finance.

Furthermore, Interest Support is a financial support instrument, provided for the loans with a term of at least one year obtained within the frame of the investment encouragement certificate.

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