4th Region Regional Incentive Support Elements

1) Tax Reduction
a) Contribution Rate to Investment is 30% outside OSB and 40% within OSB,
b) Corporate/Income Tax Reduction Rate is 70% outside OSB and 80% within OSB.
2) Employer’s Share of Insurance Premium
a) The duration is 6 years outside OSB and 7 years within OSB.
b) The rate to Fixed Investment Amount is 25% outside OSB and 35% within OSB.
3) Interest Support
a) As TL, it is 4/600 thousand outside OSB and 5/700 thousand within OSB.
b) The upper limit for foreign currency is 1/600 outside OSB and 2/700 within OSB.
4) Allocation of Investment Location
5) VAT Exemption
6) Customs Duty Exemption
7) Minimum Fixed Investment Amount

4th Region Large Scale Investment Issues and Minimum Investment Amounts

1) Production of Refined Petroleum Products, Minimum Fixed Investment Amount, 1000 Million TL
2) Production of Chemical Substances and Products, 200 Million TL
3) Investments in Port and Port Services and Airport Investments, 200 Million TL,
4) Investments in the production of Motor Vehicles:
a) Investments in Main Industry of Motor Vehicles, 200 Million TL,
b) Investments in Sub-Industry of Motor Vehicles, 50 Million TL,
5) Investments in Railway and Tramway Locomotives and/or Wagon Production,
6) Investments in Transportation Services via Transit Pipeline,
7) Investments in the Electronics Industry,
8) Investments in the Manufacturing of Medical Devices, Precision, and Optical Instruments,
9) Investments in Drug Production,
10) Investments in the Manufacturing of Aircraft and/or Parts,
11) Investments in the Manufacturing of Machinery (Including Electrical Machinery and Equipment),
12) Investments in Metal Production, at least 50 Million TL.

Another topic is the 4th Region Supports for Large-Scale Investments. These support elements are divided into 6.
1- Tax Reduction
a) The contribution rate to investment is 40% outside OSB and 50% within OSB.
b) The Corporate/Income Tax Reduction Rate is 70% outside OSB and 80% within OSB.
2- The duration of the employer’s share of insurance premium is set at 6 years outside OSB and 7 years within OSB.
3) Allocation of Investment Location
4) VAT Exemption
5) Customs Duty Exemption
6) Minimum Fixed Investment Amount

Another incentive implementation is the application of the Strategic Investments Incentive System.
The support elements of this application are divided into 8.
1) Tax Reduction
a) Contribution rate to investment is 50%
b) Corporate/Income tax reduction rate is 90%
2) Employer’s Share of Insurance Premiuma) Duration is 7 years
b) The rate to Fixed Investment Amount is 15%
3) Interest Support
a) TL, 5
b) Foreign Currency, 2
c) The ratio to fixed investment amount is 5%
d) The upper limit is set at 50 Million TL.
4) Allocation of Investment Location
5) VAT Exemption
6) VAT Refund
7) Customs Duty Exemption
8) Investment Criteria

Another heading is Priority Investment Issues. These issues are divided into 19.
1) Investments in cargo and/or passenger transportation by sea
2) Railway investments aimed at intercity cargo and/or passenger transportation to be made by the private sector and railway investments aimed at urban cargo transportation
3) Test centers, wind tunnels and related investments (those aimed at automotive, aerospace, or defense industry)
4) Tourism accommodation investments that can benefit from regional supports in culture and tourism protection and development areas or thermal tourism
5) International fair investments with a minimum closed area of fifty thousand square meters (excluding accommodation and shopping center units)
6) Investments in the defense sector to be carried out based on project approval from the Ministry of National Defense
7) Mining extraction investments and/or mining processing investments (excluding 1st group minerals defined in the Mining Law dated 04.06.1985 and gravel investments, as well as extraction and/or processing investments to be carried out in Istanbul province)
8) Pre-school, primary school, secondary school, high school, vocational education, and investments in higher education, and investments in pre-school education, kindergartens, and day care centers to be implemented by the private sector
9) Investments in the production of products or parts developed as a result of R&D projects supported by the Ministry of Science, Industry and Technology, TÜBİTAK, and KOSGEB
10) Minimum investments of 300 million TL to be made in the main industry of motor vehicles and at least 75 million TL in motor investments, as well as investments amounting to at least 20 million TL in motor components, drivetrain components, and automotive electricity
11) Investments in electricity generation using minerals that are included in the 4-b group of Article 2 of the Mining Law based on a valid mining operation license and permit issued by the Ministry of Energy and Natural Resources.
12) Investments aimed at energy efficiency that provide at least 20% energy savings per unit product and have a maximum payback period of 5 years, carried out in existing manufacturing facilities with an annual minimum energy consumption of 500 TEP (ton equivalent of oil), based on project approval given by the Ministry of Energy and Natural Resources, excluding 'Investments not to be incentivized'
13) Investments for electricity generation through the recovery of waste heat from a facility (excluding gas-based electricity generation plants)
14) Investments in liquefied natural gas (LNG) amounting to at least 50 million TL and underground natural gas storage investments
15) Investments in carbon fiber production or the production of composite materials made from carbon fiber, provided that they are produced together
16) Investments in the production of products classified in the high-tech industry class according to the Organization for Economic Cooperation and Development (OECD) definition of technology intensity (US-97 Code: 2423, 30, 32, 33, and 353)
17) Mining exploration investments to be made by investors holding valid exploration permits or certificates issued as per the Mining Law
18) Investments in the production of turbines and generators aimed at renewable energy generation and the manufacturing of blades used in wind energy production
19) Integrated investments in aluminum flat product manufacturing aimed at direct cooled slab casting and hot rolling method

4th Region Non-Incentivizable Investment Issues

A) Agriculture and Agricultural Industry
1) Flour, semolina (except for integrated semolina investments with pasta production and corn semolina investments), feed (except for fish meal, fish oil, fish feed and feed production within integrated livestock production), corn starch and starch-based sugars (except for investments aimed exclusively at the production of crystal fructose from starch milk).
2) Businesses providing catering services (ready meals).
3) Granulated sugar
4) Greenhouse investments under 5 decares
5) Vegetative production (except for greenhouse investments of 5 decares and above, cultivated mushroom production, and fodder plant production within integrated livestock investments).
6) Livestock investments other than integrated livestock investments to be encouraged under regional implementations and conditionally supported livestock investments.
7) Dairy processing investments with a production capacity of 5 tons/day or less.

B) Manufacturing, Energy, and Mining Investments
1) Investments in brick and tile production other than modernization types
2) Cotton processing investments
3) Investments in yarn and weaving (except for wool yarn investments over 15 million Turkish Liras, weaving investments over 5 million Turkish Liras, investments in smart and multifunctional technical textiles, carpet, tufting, non-woven fabrics and sack production) outside of modernization investments.
4) Natural gas-based electricity generation investments (except for completely new and expansion projects for which licenses were obtained from the Energy Market Regulatory Authority before 19/6/2012 and modernization types aiming to reduce specific fuel consumption by at least 15%)
5) Mining investments to be carried out based on a royalty contract (Mining investments carried out in publicly owned mining lands based on agreements made with public institutions and organizations or their direct subsidiaries are not assessed within this scope).
6) Investments in the production of iron and steel products (however, businesses that meet the following criteria in these production areas can only be supported through the general incentive system)
7) Investments in the production of synthetic fiber or synthetic yarn through an extrusion method other than modernization types (however, investments in synthetic fibers or synthetic yarn production that meet the criteria stated in Article 7 in conjunction with the above-mentioned modernization investments can only be supported through the general incentive system)

C) Services Sector
1) Investments in education outside of preschool, primary school, secondary school, high school, associate degree, university, higher education, and technical and vocational training, as well as investments aimed at educating adults (courses, tutoring centers, etc.).
2) Investments in polyclinics, consulting rooms, and joint consulting rooms.
3) Tourism accommodation facilities other than hotels with tourism investment/operation certificates, boutique hotels, holiday villages, private accommodation facilities, and mountain/village houses.
4) Press and publishing investments other than daily newspaper printing services broadcasted nationwide, television/radio broadcasting, and printing, publishing, and packaging investments.
5) Investments in cinema halls.
6) Investments aimed at contracting services and housing production.
7) Investments in buses for passenger and cargo transportation, including trailers and tractors (excluding investments to be made by municipalities).
8) Investments in wholesale and retail trade, including hypermarkets, trade centers, shopping malls, and parking lots.
9) Investments in land vehicle maintenance, repair, and service stations.
10) Investments in the distribution of petroleum products (including LPG), and fuel station investments.
11) Investments in highway rest facilities, stopping points.
12) Investments in restaurants, cafeterias, entertainment venues, day-trip facilities, thermal treatment facilities, healthy living facilities, swimming pools.
13) Investments in yacht imports.
14) Investments in vehicle rental.
15) Investments in carpet cleaning services.
16) Investments in real estate leasing and business activities (except for software, R&D activities, database operations, data processing, technical testing and analysis activities, packaging activities including shows, exhibitions, and congress activities).
17) Investments by financial intermediary institutions, except for financial leasing activities.
18) Investments in cold storage facilities with an area of less than 500 square meters.
19) Completely new and expansion-oriented shipyard investments.

4th Region Investment Issues Subject to Specific Conditions

A) Agriculture and Agricultural Industry
1) For integrated investments in large cattle aimed at milk, a minimum of 150 big cattle.
2) For integrated investments in large cattle aimed at meat, a minimum of 150 big cattle.
3) In breeding large cattle in an integrated manner (meat/milk oriented), a minimum of 150 large cattle/period.
4) In integrated poultry investments, 100,000 units/period.
5) For integrated investments in small ruminants (including breeding) aimed at milk and meat, a condition of 1,000 small ruminants/period is required.