Turkey has widened the scope of government incentives offered
for investments in certain industries. Changes to the Investment
Incentive Scheme are intended to update the existing framework to
keep pace with Turkey's market needs and address recent
developments. Changes particularly apply to investments into
airports, tourism and production of certain flat aluminum goods.
Conditions for the government incentives are also outlined in a
more detailed manner than previously.
Governmental grants for enterprises are outlined by Cabinet
Decision 2012/3305, which entered into effect on 15 June 2012. The
Decision Amending the Decision Regarding Governmental Grants on
Investments ("Amendment Decision") was
published on 29 February 2016, entering into effect on 8 April
The Investment Incentive Scheme allows entrepreneurs to receive
incentives depending on the scale of investment, sector, region and
the goods/services which will be produced. The scheme has four main
Large Scale Investments
Significant changes introduced by the Amendment Decision
Applications for Strategic
Investments will be accepted up to 31 December 2016.
Employers will receive support for
their national insurance contribution with regard to Large Scale
and Regional Investments within the scheme, for certain time
periods and regions, as outlined in the Amendment Decision.
For large Scale investments which had
begun by 31 December 2016, income or corporate tax will be reduced
until the amount reaches the defined contribution amount.
Integrated investments regarding
production of flat aluminum goods via direct frigorific slab
casting and hot rolling are now included in the scheme.
Tourism investments and investments
into operating permitted sea tourism facilities are now included in
the Regional Incentives aspect of the scheme.
Airport investments are now included
in the Large Scale Incentives aspects of the scheme.
For investments which remain
unfinished due to safety issues, entrepreneurs can request extra
time to receive the incentive and continue to work, provided the
Investment Incentive Documentation was finalized before 1 June
Please see this link for the full text of the Amendment
Decision (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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