WHAT IS AN INVESTMENT INCENTIVE CERTIFICATE?
An incentive certificate is a document containing the characteristic values of the investment, providing the opportunity to benefit from the support elements recorded therein if the investment is realized in accordance with these values and the determined conditions, and issued for investments determined to be beneficial for the country's economy by the Undersecretariat in line with the objectives of the Decision on which this Communiqué is based.
WHO CAN OBTAIN AN INVESTMENT INCENTIVE CERTIFICATE?
Natural persons, capital companies, cooperatives, joint ventures (ordinary partnerships), public institutions and organizations (general and annexed budget institutions and organizations, provincial special administrations, municipalities and public economic enterprises and institutions and organizations where their share ratio in capital composition exceeds 50%), professional organizations with public institution status, associations and foundations, and branches of foreign companies abroad in Turkey can apply for an incentive certificate to be issued.
WHAT SUPPORT ELEMENTS CAN BE BENEFITED FROM WITHIN THE SCOPE OF INVESTMENT INCENTIVE CERTIFICATE?
Customs Duty and Mass Housing Fund Exemption: Import of investment goods within the scope of incentive certificate and CKD components and parts within the investment period for new model production-oriented automobile and light commercial vehicle investments are exempt from Customs Duty required to be paid pursuant to the current Import Regime Decision.
Value Added Tax Exemption: Pursuant to Value Added Tax Law No. 3065 dated 25/10/1984, import and domestic deliveries of machinery and equipment within the scope of incentive certificate to investors holding incentive certificates are exempt from Value Added Tax. The same provision applies to transfer transactions of incentive certificate or machinery and equipment within the scope of incentive certificate.
Interest Support: Interest support may be foreseen to be covered from budget resources for the following investments to be made within the scope of incentive certificate.
- a) Investments to be made in priority development regions,
- b) Investments to be made by SMEs,
- c) R&D investments,
- d) Environmental investments.
SMEs' applications for interest support require the tables in the annex of the Regulation approved by a Certified Public Accountant to be submitted to the Undersecretariat.
WHERE IS THE APPLICATION AUTHORITY?
- Requests for issuing incentive certificates should in principle be made to the Undersecretariat.
- However, except for R&D investments, environmental investments, investments to be realized by foreign capital companies, at the investor's preference, applications for investments in manufacturing and agricultural industry sector with a fixed investment amount not exceeding 8 million Turkish Liras and investments in locations where industry chambers affiliated to TOBB are located can also be made to the relevant industry chamber.
- Applications to be made to the Undersecretariat should be made to the General Directorate of Foreign Capital for investments to be realized by foreign capital companies and branches, and to the General Directorate of Incentives and Implementation for all other investments.
WHAT SHOULD BE THE MINIMUM INVESTMENT AMOUNT FOR AN INVESTMENT TO BE TIED TO AN INCENTIVE CERTIFICATE?
For an investment to be tied to an incentive certificate, the total fixed investment amount must be;
- a) Minimum 200 thousand Turkish Liras, maximum 2 million Turkish Liras for SME investments,
- b) Minimum 200 thousand Turkish Liras for incentive certificates issued for investments to be realized through financial leasing companies,
- c) Minimum 1 million Turkish Liras for other investments.
WHAT ARE THE DOCUMENTS REQUIRED FOR APPLICATION?
For documents required for applications for incentive certificate issuance, please click on documents required for application.
INVESTMENT INCENTIVE CERTIFICATE REVISION PROCEDURES
Requests for amendments to the incentive certificate and/or the lists of machinery and equipment to be procured domestically and through import in the annex of the certificate are finalized by the authority to which the application for incentive certificate issuance was made.
INCENTIVE CERTIFICATE EXTENSION
It is essential that investments within the scope of incentive certificate are realized within the period foreseen as a result of project-based evaluation. The realization status of the investment is reported to the relevant authority that issued the incentive certificate in six-month periods by filling in the Investment Follow-up Form. In case the investment cannot be realized within the foreseen period, application for extension should be made to the institution that issued the incentive certificate. Applications are made together with the investment follow-up form within three months following the end of the investment period. Additional time of half of the initial period recorded in the incentive certificate may be granted once.
COMPLETION EXPERTISE AND VISA
Investors are required to apply to the authority that evaluated the incentive certificate application for completion visa within six months following the expiry of the period or additional period foreseen in the incentive certificate. For documents required for completion, please click on documents required for investment completion.
