Mugla Investment Incentives
- Investment Incentives In Türkiye
Turkiye’s investment incentive system, launched in April, 2012, became effective by the “Council of Minister’s Decree No. 2012/3305 on Government Subsidies for Investments” of June 15, 2012. Within these regulations, investments that meet certain minimum conditions to be made in Türkiye can benefit from incentives with a wide range of instruments depending on the investment subject and investment province. By using the Incentives Wizard web application which was created by the Ministry of Industry and Technology, Directorate General of Development Agencies, it is very easy to reach the investment incentives results and calculation of the amount of total returns of your investment is possible. Incentives Wizard web application is also avaliable in English Language. It can be accessed from the link below:
https://www.yatirimadestek.gov.tr/incentives-wizard
- Fundamentals of The Incentive System In Türkiye
Regional Perspective
Türkiye is divided into 6 regions according to the industrialization level. Region 1 consists of the most developed cities, and Region 6 includes least developed cities. The aim of this perspective is to contribute to the development of less developed regions by encouraging investment. Muğla is classified as 1 th region province.
Product Perspective
On the other hand, there are a few exceptions to the regional perspective. For example, while medium-high tech products can benefit from Region 4 incentives, high tech products can benefit from Region 5 incentives independent of the investment region. There is an also incentive program called “Project Based Incentives” which is a tailored scheme to attract investments having high importance for Türkiye.
- Investment Incentive Certificate Application
Investment Incentive Certificate applications can be made through the web-based system called E-TUYS. Only those who have a qualified electronic certificate and whose authorization application request has been approved by the Ministry can access the system to carry out investment incentives via E-TUYS. For this reason, investors must apply to the Ministry to perform the authorization process in the first step. After the authorization request is finalized by the Ministry, the persons authorized to perform transactions via E-TUYS can log into the system and initiate transactions. Muğla Investment Support Office provides free consultancy during the application process.
- Types Of Incentives
In the investment incentive system, investments are supported in different types as General Investment, Regional Investment, Sub-Regional Investment, Priority Investment and Strategic Investment. The benefits of incentives vary according to the subject of the investment. The table below shows the different types investment incentives in Muğla.
Table: Types of Investment Incentives in Muğla
|
Incentive Instruments |
General Investments |
Regional Investments |
Sub-Regional Investments in Milas OIZ |
Sub-Regional Investments in Sub Districts |
Medium-High Tech Industry Investments |
Priority Investments |
Strategic Investment |
|
VAT Exemption |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
|
Customs Duty Exemption |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
|
Tax Deduction Investment Contribution Rate * (%) |
Not Applicable |
Applicable (15%) |
Applicable (20%) |
Applicable (20%) |
Applicable (30%) |
Applicable (40%) |
Applicable (50%) |
|
Social Security Premium Support (Employer’s Share) |
18 Months Only in Shipbuilding Investments of Shipyards |
Applicable For 2 Years |
Applicable For 3 Years |
Applicable For 3 Years |
Applicable For 6 Years |
Applicable For 7 Years |
Applicable For 7 Years |
|
Social Security Premium Support (Employer’s Share) |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
|
Interest/Profit Share Support |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Applicable (4 points for Internal Loan, 1 point for Foreign Currency Loan) |
Applicable (5 points for Internal Loan, 2 points for Foreign Currency Loan) |
Applicable (5 points for Internal Loan, 2 point for Foreign Currency Loan) |
|
Land Allocation |
Not Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
Applicable |
|
VAT Refund* |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Applicable |
Explanation of Incentive Elements
VAT Exemption: Items included in the Domestic and Imported Machinery and Equipment List approved within the scope of the incentive certificate can be purchased excluding VAT.
Customs Duty Exemption: An exemption is applied to the Customs Duty arising from the import of the items included in the Imported Machinery and Equipment List approved within the scope of the incentive certificate. Machinery and equipment specified in Annex-8 of the Decree cannot benefit from the Customs Duty exemption.
Tax Deduction: It is an incentive applied to Income or Corporate Tax and applied with a discount until the Investment Contribution Amount is reached.
Social Security Premium Support (Employer’s Share): The employer's share of the insurance premium corresponding to the minimum wage covered by the Ministry, which must be paid for additional employment provided by investment within the scope of the incentive certificate. Support starts after the approval of the Investment Completion Visa.
Social Security Premium Support (Employee’s Share): This support stipulates that for the additional employment created by the investment, employee’s share of social security premium on portions of labor wages corresponding to amount of legal minimum wage, will be covered by the Ministry. The incentive is applicable only for the investments to be made in the Region 6 and the strategic investments supported under the the Technology Focused Industry Movement Program (TFIMP) within the scope of the incentive certificate. The support starts from the first month following the approval of the investment completion visa.
Interest Rate Support: It is a financial support instrument, provided for the loans with a term of at least one year obtained within the frame of the incentive certificate. The measure stipulates that a certain portion of the interest/profit share regarding the loan equivalent of at most 70% of the fixed investment amount registered in the certificate will be covered by the Ministry. Since no information was entered, your incentive amount was not calculated.
Land Allocation: Refers to allocation of land to the investments with Investment Incentive Certificates, if any in that province in accordance with the rules and principles determined by the Ministry of Finance.
VAT Refund*: VAT collected on the building & construction expenses made within the frame of strategic investments with a fixed investment amount of 500 million TL will be rebated. Building-construction expenditures in the manufacturing and tourism industry within the scope of investment incentive certificate can be benefited from VAT exemption until 31/12/2025.