DOING BUSINESS IN TURKEY
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42 Doing Business in Turkey<br />
Turkey has 6 different investment regions, which are divided<br />
according to economic activity and geography. Those regions are<br />
listed in the table below:<br />
General Investment Incentives<br />
All investments that meet capacity conditions<br />
and minimum fixed investment amount are<br />
supported by general investment incentives.<br />
Although investors can benefit from general<br />
investment incentives for their investments<br />
made in all regions, there are different<br />
minimum investment amounts in regions.<br />
Region 1&2 require TRY 1 million minimum<br />
fixed investment amount while other regions<br />
require TRY 500,000.<br />
Basically, 2 types of support instruments are<br />
provided by general investments incentives,<br />
which are VAT exemption and customs duty<br />
exemption.<br />
Customs Duty Exemption: Investors holding<br />
an investment incentive certificate may benefit<br />
from customs tax exemption for imported<br />
equipment and machinery for their projects.<br />
VAT Exemption: Investors holding an<br />
investment incentive certificate may also<br />
benefit from VAT exemption for imported<br />
or domestically purchased equipment and<br />
machinery for their projects.<br />
Regional Investment Incentives<br />
There are minimum investment<br />
requirements to take advantage<br />
from regional incentives.<br />
In this regard, the minimum<br />
investment amounts are TRY 1<br />
million for region 1 and 2, and TRY<br />
500,000 for other regions.<br />
The summary of regional<br />
investments are mentioned in the<br />
following table:<br />
Centrum Consulting | 2017<br />
*SSPS: Social Security Premium Support<br />
**Source: Investment Guide published by Investment Support and<br />
Promotion Agency of Turkey (http://www.invest.gov.tr)
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