Under the Investment Incentive Certificate issued by the Ministry of Industry and Technology, the state provides various supports to investing companies in order to support investments, reduce the current account deficit, increase the production of intermediate goods and products with high import dependency, support high and medium-high technology investments that will deliver technological transformation, increase the investment support provided to the least developed regions, reduce regional development disparities, increase the effectiveness of support instruments and support clustering activities.
Some of the support instruments provided to companies under the investment incentive certificate are as follows:
VAT Exemption: Applied as non-payment of value added tax on investment machinery and equipment to be procured domestically and from abroad under the Investment Incentive Certificate, and on sales and leases of software and intangible rights covered by the certificate. Building and construction expenditure incurred under the certificate in the manufacturing and tourism sectors may benefit from the VAT exemption until 31/12/2025.
Customs Duty Exemption: Applied as non-payment of customs duty on investment machinery and equipment to be procured from abroad under the Investment Incentive Certificate.
Tax Reduction: The application of income or corporate tax at a reduced rate until the contribution amount envisaged for the investment is reached. This support is provided under incentive certificates issued within the framework of strategic investments, regional incentive schemes and priority investment incentive schemes.
Employer’s Share of Social Security Premium Support: The Ministry meets, for a certain period, the portion corresponding to the minimum wage of the employer’s share of the social security premium payable for the additional employment created by the investment under the Investment Incentive Certificate. It applies to incentive certificates issued under strategic investments and regional and priority investment incentive schemes.
Employee’s Share of Social Security Premium Support: The Ministry meets, for 10 years, the portion corresponding to the minimum wage of the employee’s share of the social security premium payable for the additional employment created by the investment under the Investment Incentive Certificate. Excluding general incentive schemes, it is envisaged only in incentive certificates issued for investments to be made in Region 6. It may also be applied to strategic investments supported under the Technology-Focused Industry Move Programme.
Interest/Profit Share Support on Loans: A financing support provided for loans with a maturity of at least one year used under the Investment Incentive Certificate. A certain portion of the interest or profit share payable on a loan used for up to 70% of the fixed investment amount recorded in the incentive certificate is met by the Ministry. This support instrument applies to strategic investments and to investments to be made in Regions 3, 4, 5 and 6 under regional incentive and priority investment incentive schemes.
Allocation of Investment Land: For strategic investments and regional and priority investments for which an Investment Incentive Certificate has been issued, investment land may be allocated in accordance with the procedures and principles determined by the Ministry of Environment, Urbanisation and Climate Change (General Directorate of National Property).
VAT Refund: The refund of VAT collected on building and construction expenditure incurred under Strategic Investments with a fixed investment amount exceeding 500 million Turkish lira.
At Tenet, for the investment incentive certificate application process and thereafter, with regard to financial and tax practice, we:
- Identifying the investment incentive certificate that fits the need,
- Preparing investment incentive applications,
- VAT exemption,
- Customs duty exemption,
- Tax reduction,
- Employee’s and employer’s share of social security premium supports,
- VAT refund,
- Allocation of investment land,
- Reduced corporate tax applications,
- Regional incentive schemes,
- Priority investment areas,
- Strategic investments,
- Sub-region supports: we provide advice and problem-solving services on matters such as these, and aim for everyone who wishes to contribute to the growth and development of their business to benefit from investment incentives in the most appropriate way.