Turkey has updated its project-based investment incentives
scheme, providing financial support for innovative,
technology-oriented, R&D focused, high value-added projects,
which assist in reducing foreign dependency. The incentives are
available to projects which comply with the Turkish
government's targets outlined in national development plans and
annual programs, as well as projects specifically promoted by the
Ministry of Economy.
The Law on Supporting Investments on Project Basis and Amending
Certain Laws and Decrees numbered 6745 was published in Official
Gazette number 29824 on 7 September 2016 ("Amendment
Accordingly, qualifying projects could receive the following
support instruments and exemptions:
Up to 100% corporate tax exemption.
Up to 200% investment support.
Corporate tax exemption for profits derived from the investment
during the first ten years of operations.
Income tax withholding support.
Exemption from customs duties.
Free land allocation for 49 years where the investment is made
on an immovable property belonging to the Turkish Treasury, or free
transfer of these immovable properties for completed projects,
provided the anticipated employment lasts for at least five
Up to ten years' support with the employer's share of
social security premiums.
Up to 50% compensation of energy consumption expenses related
to the investment, for up to ten years.
Abolishment of interest on loans for fixed investments.
Up to five years' salary support for qualified employees,
capped at twenty times the gross monthly minimum wage.
Up to 49% state partnership, provided an initial public
offering or direct sale to investors will occur within ten
Support will be paid from the Ministry of Economy's
Goods produced under the project based incentive schemes may
benefit from the government's purchase guarantee, after the
approval of the Council of Ministers on the amount and the time
All infrastructure investments may be reimbursed, subject to
approval from the Council of Ministers.
If ownership of an investment is transferred, all acquired
rights under the investment scheme will be passed to the new
Please see this link for full text of the Amendment
Law (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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Law no. 6745 on Promoting Investments on Project Basis and Amending Some Laws and Decree Laws was promulgated on 7th of September.
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