I. Specialized Free Zones
The zones, which are established in accordance with the Presidential Decree within the framework of the Law numbered 3218 are named the Specialized Free Zones and they are promoted to support the service sectors with foreign currency earnings, R&D or other high-tech exporters.
In this manner, today there are 19 free zones that are established which provide direct employment to 65,000 people and indirectly over 150,000 people in Turkey with the help and encouragement of the T.R. Ministry of Commerce (the "Ministry"). The number of companies benefiting from these specialized free zones are increasing day by day.
II. Advantages and the Scope of Subsidies
The Ministry aims to increase the exporting rate of high technology products and attract the international investors. Within this scope the "informatics" sector has been determined as the first target sector rather than heavy industries or the energy sector in these specialized free zones, unlike other free zones. The operating companies that will establish themselves within the Specialized Free Zone will be supported with interest or dividend support, as well as support for the monthly gross wages of their qualified personnel and the rental expenditures of the companies for land and buildings. As a matter of fact with the Circular numbered 2020/4 Specialized Free Zones that are channeled to export are seen as a lever for Turkish industry reduces bureaucracy and provides economic and sociological benefits.
III. Application Criteria
A different process is followed for applications made from Turkey or abroad. The application procedures are explained in detail in the Article 5 of the Circular numbered 2020/4 and summarized at the meeting held on 19.02.2021 in cooperation with the Ministry and Foreign Economic Relations Board as follows:
The criteria for the persons to be supported will be determined both by the Circular and in accordance with Article 4 of the President Decree on the Supports to be Provided in Specialized Free Zones ("Decree") dated 08.06.2020 and numbered 2635 The opinion of the Ministry of Industry and Technology will be taken in determining the criteria for R&D intensity and advanced technology content by determining applicants.
As stated in the 5th Article of the Decree, applicants can benefit from the specified supports separately for a maximum of 5 (five) years.
IV. Required Documents for Application
- Applicants who have been granted Operating Licenses can apply to the Regional Directorate to benefit from the supports after they certify that they have completed their investments with a capacity report. In this context, after completing their investments related to their activities, they must apply to the Regional Directorate with a "Request for Inclusion in the Scope of Qualified Personnel Wage Expense Support and/or Rent Expense Support, a Letter of Undertaking and Application Form. In the application, it is mandatory to submit the Industrial Registry Certificate and the Capacity Report.
- Prior to the effective date of the Circular, existing parties holding operating licenses can also apply to the Regional Directorate to benefit from these supports. During their application, they apply to the Zone Directorate with the Specialization Free Zone Operating License, Application Form, and the Request for Inclusion in the Scope of "Qualified Personnel Wage Expense Support and/or Rental Expense Support, a Letter of Undertaking and Application Form." In the application, it is mandatory to submit the Industrial Registry Certificate and the Capacity Report.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
