Super Incentives for Investment

Turkey’s Investment Incentives scheme is specifically designed to foster investments with the potential to reduce dependency on the import of intermediary level goods vital to the country’s strategic sectors. Primary objectives of the new investment incentives scheme are as follows:
reduce the current account deficit, boost investment support for lesser developed regions, increase the level of support tools, promote clustering activities, and support investments that will enable technology transfer.

4 MAIN SCHEMES FOR INCENTIVES

Effective as of January 1, 2012, the new investment incentives system sets out the following four schemes: for use by local and international investors:

1. General Investment Incentives Scheme
2. Regional Investment Incentives Scheme
3. Large-Scale Investment Incentives Scheme
4. Strategic Investment Incentives Scheme

1- GENERAL INVESTMENT INCENTIVES SCHEME

Regardless of the investment locality, all projects meeting both the specific capacity conditions and the minimum fixed investment amount are supported within the framework of the General Investment Incentives Scheme. Some types of investments are not eligible for the investment incentives system and would not benefit from this scheme.

The minimum fixed investment amount isTRY1 million in Region 1 and 2, and TRY 500,000 in Regions 3, 4, 5 and 6. Major investment incentive instruments are:
* Exemption from customs duties: Customs tax exemption for imported machinery and equipment for projects with an investment incentive certificate.

* VAT exemption: VAT exemption for imported or domestically purchased machinery and equipment for projects with an investment incentive certificate.

The supportinstrumentsto be provided within the framework of the various investment incentives schemes are shown in the following table:
*Provided that the investment is made in Region 6.
**Provided that the investment is made in Regions 3, 4, 5 or 6 within the framework of the Regional Investment Incentives Scheme.
***For construction expenditures of strategic investments with a minimum fixed investment amount of TRY 500 million.

2- REGIONAL INVESTMENT INCENTIVES SCHEME

The sectors to be supported in each region are determined in accordance with regional potential and the scale of the local economy, while the intensity of support varies depending on the level of development in the region.

The minimum fixed investment amount is defined separately for each sector and region with the lowest set at TRY 1 million for Regions 1 and 2, andTRY500,000 for the remaining regions.

The terms and rates of support provided within the Regional Investment Incentives Scheme are shown in the following table.

3- LARGE-SCALE INVESTMENT INCENTIVES SCHEME
12 investment topics that have potential to foster Turkey’s technology,
R&D capacity and competitiveness are supported by Large-Scale Investment Incentives Scheme instruments.

4- STRATEGIC INVESTMENT INCENTIVES SCHEME

Investments meeting the criteria below are supported within the framework of the Strategic Investment Incentives Scheme:

• Domestic production capacity for the product to be manufactured with the investment shall be less than the import of the product.
• Investment shall have a minimum investment amount of TRY 50 million.
• Ihe investmentshall create a minimum added-value of 40% (this condition is not applicable to refinery and petrochemicals investments).
• Total import value of the product to be manufactured with the investment shall be minimum of USD 50 million as of the past one year (excluding products that are not locally produced).

PRIORITY AREAS

The new investment incentives system defines certain investment areas as “priority” and offers them the regional support extended to Region 5 by the Regional Investment Incentives Scheme, regardless of the region of the investment.If the fixed investment amount in priority investments is TRY 1 billion or more, tax reduction will be applied by adding 10 points on top of the “rate of contribution to investment” available in Region 5.If priority investments are made in Region 6, the regional incentives available for this particular region shall apply.

Fields of investment with specific priorities to be supported with Region 5 instruments regardless of the investment’s region are:

• Tourism accommodation investments in Cultural and Tourism Preservation and Development Regions and investments that could benefit from regional incentives with regard to thermal tourism
• Mine extraction and/or processing investments
• Mining exploration investments to be made in the licensed areas by investors with a valid Exploration License or Certificate issued pursuant to the Mining Law
• Railroad and maritime freight or passenger transportation investments
• Investments in the defense industry to be made with respect to the project approval received from the Undersecretariat for Defense Industry.
• Test centers, wind tunnels, and similar investments made for the automotive, aerospace or defense industries
• Investments made by the private sector for kindergartens and day-care centers, as well as preschools, primary, elementary, and high schools
• International trade fair investments with a minimum indoor area of 50,000 square meters (excluding accommodation and shopping center units)
• Investments for the manufacturing of products or parts developed by an R&D project that is supported by the Ministry of Science, Industry and Technology, TUBITAK or KOSGEB
• Investments in the motor vehicles main industry worth a minimum amount of TRY 300 million, engine investments worth a minimum amount of TRY 75 million, and investments for motor engine parts, transmission components/parts and automotive electronics worth a minimum amount of TRY 20 million
• Investments for power generation where metals stated in the 4-b group of Article 2 of the current Mining Law No. 3213 within the scope of a valid mining license and permit issued by the Ministry of Energy and Natural Resources are used as inputs
• Energy efficiency investments that would reduce energy consumption in unit production by a minimum of 20 percent for at least 5 years in existing manufacturing facilities with an annual consumption of least 500 tons of oil equivalent (toe) energy
• Investments for electricity generation through waste heat recovery in a facility (excluding natural gas-fired electricity generation plants)
• Liquefied natural gas (LNG) investments and underground gas storage investments with a minimum amount of TRY 50 million
• Investments for the production of items in high-tech industry segment stipulated in the Organization for Economic Cooperation and Development’s (OECD) definition for technology intensity

FOR MORE DETAILS PLEASE GO TO: www.invest.gov.tr

28 Eylül 2015 Pazartesi

Etiketler : English