5. Regional Incentive Support Elements of Region

• tax reduction,
• employer's share of insurance premium,
• interest support, allocation of investment location,
• VAT exemption,
• customs tax exemption,
• minimum fixed investment amount.

- The first of these, tax reduction, contributes 40% to investments outside the organized industrial zone (OIZ) and 50% within it.
- The tax reduction rate for Corporate/Income Tax is set at 80% outside the OIZ and 90% within it.
- The duration for the employer's share of insurance premium, another support element, is 7 years outside the OIZ and 10 years within.
- The upper limit for interest support is 5/700 million TL outside the OIZ and 7/900 million TL within it. In foreign currency, the upper limit is 2/700 million TL outside the OIZ and 2/900 million TL within it.
- The minimum fixed investment amount, another support element, is determined to be 500 thousand TL in line with the budget for the OIZ.
Investment incentives - Another main topic in Region 5 is large-scale investment projects and the minimum investment amount.
Large-scale projects are categorized into 14;
1. Manufacturing of refined petroleum products, with a minimum fixed investment amount of 1,000 million TL
2. Manufacturing of chemical substances and products, with a minimum fixed investment amount of 200 million TL,
3. Investments in port and port services and airport investments, with a minimum fixed investment amount of 200 million TL,
4. Investments in the manufacturing of motor land vehicles;
5. Minimum fixed investment amount for the main industry of motor land vehicles is 200 million TL.
6. Investments in the secondary industry of motor land vehicles are 50 million TL.
7. Investments in the manufacturing of railway and tram locomotives and/or wagons
8. Investments in transit pipeline transportation services
9. Investments in electronics industry
10. Investments in manufacturing medical devices, precision and optical instruments
11. Investments in pharmaceutical production
12. Investments in the manufacturing of aircraft and spacecraft and/or their parts
13. Investments in machinery (including electrical machines and devices)
14. Investments directed towards metal production

The minimum fixed investment amount for all investments listed above is set at 50 million TL.

The Investment Incentive Certificate is another main topic in region 5 related to large-scale investments.
The support elements provided for this investment are divided into 6.
1. Tax reduction
a) The contribution rate to investment, 50% outside the OIZ and 60% within it.
b) Corporate/Income tax reduction rate is 50% outside the OIZ and 90% within it.
2. Insurance Premium
a) The duration is 7 years outside the OIZ and 10 years within it.
b) The ratio to fixed investment amounts is determined to be 11% outside the OIZ and 11% within it.
3. Allocation of Investment Location for all large-scale investments inside and outside the OIZ,
4. VAT exemption for all investments with Incentive Certificate inside and outside the OIZ,
5. Customs tax exemption for all investments in the incentive certificate inside and outside the OIZ is defined as applicable.

5. Strategic Investment Topics of Region

These support elements are divided into 7.
1. Tax reduction

a) The contribution rate to investment is 50%,
b) Corporate/Income tax reduction rate is 90.
2. Employer's share of insurance premium
a) The duration is 7 years,
b) The ratio to fixed investment is 15%
3. Interest support
a) 5 in TL,
b) 2 in foreign currency,
c) The ratio to fixed investment amount is 5%,
d) The upper limit in TL is set at 50 million.
4. Allocation of investment location
5. VAT exemption
6. VAT refund
7. Customs tax exemption

5. Investment Topics Not Eligible for Incentives

Investment topics that are not eligible for incentives:
1. Agriculture and Agricultural Industry
2. Manufacturing, Energy, and Mining investments
3. Services Sector are categorized.

Investment Topics Subject to Conditions for Region 5
1. Agriculture and Agricultural Industry
2. Manufacturing Industry
3. Services Sector is also distributed.

Contents

• 5. Regional Incentive Support Elements of Region

• 5. Strategic Investment Topics of Region

• 5. Investment Topics Not Eligible for Incentives in Region

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