The Ministry of Economy helps the new investments be realised and extend the existing investments in a number of sectors through attractive investment incentives it offers to both domestic and foreign investors who want to make investments in Turkey.
The Ministry of Economy encourages entrepreneurs and businessmen for new investments through supports offered in areas such as VAT exemption, customs tax exemption, tax reduction, interest support, investment location, insurance premium support for employers as well as VAT refund.
In order to benefit from incentives, "Investment Incentive Certificate" must be prepared first. The incentive certificate is a document containing the characteristic values of the investment and providing the opportunity of benefiting from the registered support elements should the investment is performed in accordance with these values and the stipulated conditions and it is arranged for the investments to be carried out in accordance with the purposes of the decision.
Investments Made In Weaving And Apparel Sectors Go At Full Speed
In 2017 and in the first quarter of 2018, incentive applications have increased in many sectors, while investments made in the textile sector are gaining momentum through incentives offered. According to the investment incentive certificates issued by the Ministry of Economy in 2017 and the first quarter of 2018, it is observed that the thoroughly new investments are predominantly made in the field of weaving and apparel. In 2017, 300 incentive certificates amount to TRY 2.930 million were granted domestic and foreign capital owners for thoroughly new investments in the textile and apparel manufacturing sector. 2018 turns out to be a year of investments. During the first quarter of the year, 68 incentive certificates have been issued so far.
A total number of 375 domestic and foreign companies have been granted the incentive certificate during the period covering January 2017 - April 2018 in Turkey and they have made new investments amounting to TRY 3.385 million in total. The number of planned total employment for these investments is 38 thousand 970 people.
East And South East Anatolian Region To Develop With Textile
With reference to the incentive application, the regions are divided into six regions according to their social-economic development level.
Most of the investment incentives granted previous year is initiated for the sixth region covering provinces and districts such as Ağrı, Ardahan, Batman, Bingöl, Bitlis, Diyarbakır, Hakkari, Iğdır, Kars, Mardin, Muş, Siirt, Şanlıurfa, Şırnak, Van, Bozcaada and Gökçeada. 146 investment incentive certificates have been issued for domestic investments, which are concentrated especially in the area of textile and apparel production in the Eastern and Southeastern Anatolia Region, and a total incentive of TRY 904 million has been provided. 3 incentive certificates are provided to foreign investors, thus providing support of TRY 12 million. A total of 21 thousand 524 people are planned to be employed in these investments.
The second regions where the most of the investment incentives are made is the fifth regions covering provinces such as dıyaman, Aksaray, Bayburt, Çankırı, Erzurum, Giresun, Gümüşhane, Kahramanmaraş, Kilis, Niğde, Ordu, Osmaniye, Sinop, Tokat, Tunceli and Yozgat. 70 incentive certificate have been issued for the domestic textiles investments to be made in this region. In addition to these investments where a total of TRY 420 million worth incentive will be granted, 3 foreign companies are also given incentive amounting to TRY 10 million to make investment in the region.
Employment Rate Increases
The incentive documents issued provides substantial incentive rates to the employer according to the number of employment. The number of jobs planned for the new investments made also allows many young people to be employed in the region.
65 incentive certificate have been issued for the domestic textiles investments to be made in the first region, covering provinces such as Ankara, Antalya, Bursa, Eskişehir, İstanbul, İzmir, Kocaeli and Muğla. 1,551 people will be provided employment thanks to the investments to be made in the region granted TRY 526 million worth incentive.
A total of 34 incentive certificate have been issued for the new investments to be made in weaving and apparel sector in the second region covering provinces such as dana, Aydın, Bolu, Çanakkale (Bozcaada ve Gökçeada İlçeleri Hariç), Denizli, Edirne, Isparta, Kayseri, Kırklareli, Konya, Sakarya, Tekirdağ and Yalova during the first quarter of 2017-2018. Total employment is planned to be 2 thousand 209 people in these companies where 713 million TL investment incentive provided.
Investment incentive has been issued for 31 domestic and 1 foreign companies in the third regions covering provinces such as Balıkesir, Bilecik, Burdur, Gaziantep, Karabük, Karaman, Manisa, Mersin, Samsun, Trabzon, Uşak and Zonguldak. 1,212 people will be employed through these investments granted TRY 656 million incentive in total.
All 22 investment incentives issued for investments to be made in weaving and apparel sector in the fourth region covering provinces such as Afyonkarahisar, Amasya, Artvin, Bartın, Çorum, Düzce, Elazığ, Erzincan, Hatay, Kastamonu, Kırıkkale, Kırşehir, Kütahya, Malatya, Nevşehir, Rize and Sivas are granted to domestic companies. 3,181 people will be provided employment thanks to the investments to be made in the region granted TRY 144 million worth incentive in total.
What Is Covered By These Incentive Applications?
Those applicant companies applied to the Ministry of Economy for the issuance of incentive certificates and found to be eligible can benefit from investment incentives according to the region and scale of the investment they have made. Real persons, ordinary partnerships, capital companies, cooperatives, unions, partnerships, public institutions and organizations (including institutions and organizations with general and special budgets, special provincial administrations, municipalities and state economic enterprises as well as organisation and agencies whose share percentage in their share amount exceed fifty percent) professional organisations, associations and foundations with public organisation nature and branches of foreign companies in Turkey may may apply for a certificate of incentive issuance. The scope of the incentives granted by the Ministry of Economy includes the following:
Within the context of general incentive programs: Customs tax exemption, value added tax (VAT) exemption, income tax withholding support (for investments to be made in the sixth region) and insurance premium employer support are provided.
Within the context of regional incentive programs: Customs tax exemption, value added tax (VAT) exemption, income tax withholding and insurance premium employer support and determining an investment location, Interest support (for investments to be made in the third, fourth, fifth and and sixth region), income tax withholding support (for investments to be made in the sixth region) and insurance premium support (for investments to be made in the sixth region) are provided.
Within the context of large-scale investment incentives: Customs tax exemption, value added tax (VAT) exemption, tax deduction, insurance premium employer support, determining an investment location, income tax withholding support (for investments to be made in the sixth region), insurance premium support (for investments to be made in the sixth region) are provided.
Within the context of R&D and environment investments: It can be benefited from VAT exception, customs tax exemption and loan support.
