2. Regional Incentives Support Elements

1) Tax Reduction
a) Investment Contribution Rate outside the Organized Industrial Zone is 20%, inside the Organized Industrial Zone is 25%,
b) Corporate/Income Tax Reduction Rate outside the Organized Industrial Zone is 55%, inside the Organized Industrial Zone is 60%.

2) Insurance Premium
a) Duration (year) is set as 3 years outside the Organized Industrial Zone, and 5 years inside the Organized Industrial Zone.
b) Rate to Fixed Investment Amount is 15% outside the Organized Industrial Zone, 20% inside the Organized Industrial Zone.

3) Interest Support
a) There is no upper limit in TRY.
b) There is no upper limit in foreign currency.

4) Investment Site Allocation
5) VAT Exemption
6) Customs Duty Exemption
7) Minimum Fixed Investment Amount

Major Investment Topics and Minimum Investment Amounts

1- Refined Petroleum Products Manufacturing minimum investment amount,1000

2- Manufacturing of Chemical Substances and Products, 200

3- Investments in Ports and Port Services as well as Airport Investments,200

4- Investments in Motor Vehicle Manufacturing:
a) Investments in Motor Vehicle Main Industry, 200
b) Investments in Motor Vehicle Sub-Industry, 50

5-Railway and Tram Locomotives and/or Wagon Manufacturing Investments

6- Investments in Transportation Services through Transit Pipelines,

7- Investments in Electronics Industry,

8- Investments in Manufacturing of Medical Devices, Precision and Optical Instruments,

9- Investments in Pharmaceutical Production,

10- Investments in Manufacturing of Air and Space Vehicles and/or Parts,

11- Investments in Manufacturing of Machinery (including Electric Machinery and Devices),

12- Investments for Metal Production: [Investments aimed at the production of final metals from ores and/or concentrates of metallic minerals specified in the Mining Law IV/c group (including integrated mining investments in these facilities), a minimum investment amount of 50 has been determined.

1. Investments aimed at the production of products with high import dependency, which satisfy all the criteria listed below, are considered as strategic investments.
a) The minimum fixed investment amount should be above fifty million Turkish Liras (excluding energy investments that will be realized exclusively to meet the energy needs of these investments, the portion proportional to the installed capacity of the facility).
b) The total domestic production capacity of the product subject to the investment should be less than imports.
c) At least forty percent of the added value obtainable from the investment document should be provided within the framework determined by the Ministry.
d) The total amount of imports related to the product subject to investment that occurred in the last year should be above fifty million US Dollars.

2. In investments aimed at the production of products that are not produced domestically, the provision of subparagraph (ç) of the first paragraph will not be required for refinery and petrochemical investments.

3. Applications to be made to the Ministry regarding this matter will be examined and evaluated by the Commission, and incentive certificates will be issued for eligible projects.

4. Investment topics that will not be incentivized and investments to be carried out by public institutions and organizations are not considered as strategic investments.

5. Priority investments that have a minimum fixed investment amount of over 3 billion TL are considered as strategic investments. However, the amount of interest support provided for these investments cannot exceed seven hundred thousand Turkish Liras.

Priority (Benefiting from 5th Region Supports) Investment Topics

1-Investments aimed at transportation of goods and/or passengers via sea
2- Railway investments for intercity freight and/or passenger transportation to be carried out by the private sector and railway investments for urban freight transportation
3- Test centers, wind tunnels and similar investments (those related to automotive, space or defense industries)
4- Tourism accommodation investments that can benefit from regional supports in Culture and Tourism Protection and Development Regions or in thermal tourism
5- International fair investments with a minimum of fifty thousand square meters of enclosed space (excluding accommodation and shopping center units)
6- Defense industry investments to be realized based on the project approval obtained from the Ministry of Defense
7- Mining extraction investments and/or mining processing investments (excluding 1st group mineral and gravel investments defined in the Mining Law dated 04.06.1985 and the investments to be held in the İstanbul province)
8- Preschool facilities and daycare centers as well as investments in kindergarten, primary school, secondary school and high school education carried out by the private sector
9- Investments in 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- Investments amounting to a minimum of 300 million TL to be made in the main automotive industry and investments in motors of at least 75 million TL and investments in motor parts, transmission organs/components and automotive electricity of at least 20 million TL
11- Investments in electricity production using minerals listed in section 4-b of Article 2 of the Mining Law with a valid mining operating license and permit issued by the Ministry of Energy and Natural Resources
12- Excluding "Investments Not to Be Incentivized", incentive certificates may be issued for investments aimed at energy efficiency carried out in existing manufacturing industry facilities that have an annual minimum energy consumption of 500 TEP (tons of equivalent petroleum), providing at least 20% energy savings per unit product and having a maximum investment payback period of 5 years
13- Investments aimed at electricity production from waste heat recovery in a facility (excluding natural gas-based electricity production facilities)
14- Investments of at least 50 million TL in liquefied natural gas (LNG) investments and underground natural gas storage investments
15- Investments aimed at carbon fiber production or production of composite materials with carbon fiber production
16- Investments aimed at the production of products in the high-tech industrial class according to the definition of technology intensity by the Organization for Economic Co-operation and Development (OECD) (US-97 Code: 2423, 30, 32, 33 and 353)
17- Mining exploration investments that will be made by investors holding a valid Exploration License or Certificate issued in accordance with the Mining Law
18- Investments in the manufacturing of turbines and generators aimed at renewable energy production as well as the production of blades used in wind energy
19- Investments aimed at the production of aluminum flat products using direct cooled slab casting and hot rolling methods

4. Investment Topics Benefiting from 4th Region Supports in Medium-High Technology

1-B.Y.S. Coloring Materials; Inorganic Products Used as Luminophores
2- Sulfites and Sulfates
3- Phosphonates, phosphonates, phosphates and polyphosphates, nitrates
4- Manufacturing of Other Organic Basic Chemical Substances
5- Manufacturing of Chemical Fertilizers and Nitrogen Compounds
6- Manufacturing of Synthetic Rubber and Plastic Raw Materials
7- Manufacturing of Adhesives and Gelatins
8- Modeling Pastes; Dental Wax, Plaster-Based Preparations Used in Dentistry; Fillers and Compositions for Fire Extinguishers; Culture Media Used in the Development of Microorganisms; B.Y.S. Mixed Reagents Used in Laboratory or Diagnosis.
9- Doped Chemical Elements for Use in Electronics in Disk, Diskette etc. Shapes
10- Preparations Used in the Cleaning of Metal Surfaces; Vulcanization Accelerators; B.Y.S. Plasticizers and Stabilizer Compounds for Rubbers and Plastics; B.Y.S. Reaction Initiators, Accelerators, Catalysts; B.Y.S. Alkaline Benzenes and Alkaline Naphthalenes in Mixtures
11- Internal Combustion Engine and Turbine Manufacturing; Excluding Aircraft, Motorized Vehicles, and Motorcycle Engines
12- Manufacturing of Pumps and Compressors
13- Manufacturing of Shaft Bearings, Gears, Gear Sets, and Drive Mechanisms
14- Manufacturing of Lifting and Transport Equipment
15- Manufacturing of Other General-Purpose Machines
16- Manufacturing of Agricultural and Forestry Machinery
17- Manufacturing of Machine Tools
18- Manufacturing of Metallurgy Machinery
19- Manufacturing of Mining, Quarrying, and Construction Machinery
20- Manufacturing of Machines for Processing Food, Beverage, and Tobacco
21- Manufacturing of Machines Used in Textiles, Clothing, and Leather Processing
22- Manufacturing of Weapons and Ammunition (excluding Hunting Rifles, Ammunition for Hunting Rifles, and Parts and Components for Hunting Rifles)
23- Manufacturing of Other Special Purpose Machines
24- B.Y.S. Manufacturing of Home Appliances
25- Manufacturing of Electric Motors, Generators, and Transformers
26- Manufacturing of Electricity Distribution and Control Devices
27- Lead-Acid Battery for Starter Piston Engines
28- Nickel Cadmium, Nickel-Iron, and Other Electric Batteries
29- B.Y.S. Manufacturing of Electric Equipment
30- Manufacturing of Motor Vehicles
31- Manufacturing of Railway and Tram Locomotives and Wagons
32- Manufacturing of Motorcycles
33- Manufacturing of Lifting Devices

2. Investment Topics Not to Be Incentivized in the 2nd Region Regional Incentives

A) Agriculture and Agricultural Industry
1- Flour, semolina (excluding investments integrated with pasta manufacturing and corn semolina investments), feed (excluding fish meal, fish oil, fish feed, and feed production within integrated livestock production), corn starch and starch-based sugar (excluding investments aimed exclusively at the production of crystalline fructose from starch milk).
2- Businesses providing external meal services (ready meals).
3- Cube sugar.
4- Greenhouse investments below 5 decares.
5- Plant production (excluding greenhouse investments of 5 decares and above, cultural mushroom cultivation and feed plant cultivation within integrated livestock investments).
6- Livestock investments, excluding integrated livestock investments to be incentivized under regional applications and conditional livestock investments.
7- Dairy processing investments with a production capacity of 5 tons/day and below.

B) Manufacturing, Energy, and Mining Investments
1- Investments other than modernization types for brick and tile production.
2- Cotton processing investments.
3- Investments in yarn and weaving (excluding wool yarn, yarn investments over 15 million Turkish Liras, weaving investments over 5 million Turkish Liras, smart and multifunctional technical textiles, carpets, tufting, non-woven/woven fabric, and sack production) other than modernization investments.
4- Natural gas-based electricity production investments (excluding complete new and expansion investments licensed from the Energy Market Regulatory Authority before 19/06/2012 and modernization investments aimed at reducing specific fuel consumption by a minimum of 15%).
5- Mining investments to be carried out under a royalty agreement (Mining investments made in public mining fields in accordance with agreements made with public institutions and organizations or their direct subsidiaries will not be considered within this scope).
6- Investments aimed at the production of iron and steel products (However, businesses that meet the following criteria together in these production subjects can only be supported by the general incentive system).
6.a The total shares of one or more legal entities or public institutions and organizations in the partnership structure should not be 25% or more.
6.b Not having 25% or more of another company’s capital.
6.c The number of employees should be less than 250 persons annually.
6.ç The annual net sales revenue should not exceed 50 million Euros or the balance sheet value equivalent to 43 million Euros in Turkish Lira. NOTE: These criteria may also apply to documents regulated in accordance with the Council of Ministers Decision No. 2009/15199.
7- Investments aimed at the production of synthetic fiber or synthetic yarn by extrusion method other than modernization types (However, investments of businesses producing synthetic fiber or synthetic yarn are eligible only for the general incentive system if these modernization investments also meet the criteria specified in item 7).

C) Services Sector
1- Investments in education other than preschool, primary school, middle school, high school, higher education, university, technical and vocational training, and adult education (courses, coaching, etc.).
2- Investments in polyclinics, outpatient clinics, and joint outpatient clinics.
3- Tourism accommodation facilities other than hotels with tourism investment/operation certificates, boutique hotels, holiday resorts, private accommodation facilities, and mountain/plateau houses.
4- Publishing of daily newspapers throughout the country printing services, television/radio broadcasting, and investments in printing, publishing, and packaging outside of press and broadcasting investments.
5- Investments in cinema halls.
6- Investments aimed at contracting services and housing production.
7- Investments in buses for passenger and freight transportation (excluding investments to be made by municipalities).
8- Investments in wholesale and retail trade including hypermarkets, trade centers, shopping centers, and parking lot investments.
9- Investments in maintenance, repair, and service stations for land vehicles.
10- Distribution investments in petroleum products (including LPG), fuel station investments.
11- Investments in roadside rest areas and rest stops.
12- Restaurants, cafeterias, entertainment venues, day-use facilities, thermal cure facilities, health facilities, swimming pools.
13- Investments in yacht imports.
14- Investments in vehicle rentals.
15- Investments in carpet washing.
16- Investments in real estate rentals and business activities (excluding software, R&D activities, database activities, data processing, technical testing and analysis activities, packaging activities, and show, exhibition, and congress activities).
17- Investments of financial intermediary institutions, excluding financial leasing activities.
18- Investments in cold storage rooms with an area of less than 500 m2.
19- Newly constructed and expansion-oriented shipyard investments

2. Investment Topics Subject to Specific Conditions in the 2nd Region Regional Incentives

A) Agriculture and Agricultural Industry
1- In integrated investments in milk-oriented large livestock, at least 150 large livestock.
2- In integrated investments in meat-oriented large livestock, at least 150 large livestock.
3- In breeding of breeding cattle (meat/milk oriented) at least 150 large livestock/period.
4- In integrated poultry investments, 100,000 pieces/period.
5- In integrated investments for small ruminants oriented towards milk and meat (including breeding), at least 1,000 small ruminants/period is required.

B) Manufacturing Industry
1- In investments to be made in flat knitting, a minimum of 60 total machine systems are required.
2- For ready-mixed concrete investments, a stimulus certificate may be issued for complete new investments with a minimum of 100 m3/hour and above.

C) Services Sector
1- Integrated logistics investments with a minimum total closed area of 10,000 m2, which also includes customs and insurance services offered in one or several places, handling and packaging, and automation services, can be issued an incentive certificate provided that the L2 certificate obtained from the Ministry of Transport, Maritime Affairs, and Communications is presented until the end of the investment period. Vehicles aimed at freight transport are not included within the scope of these incentive certificates.
2- In pipeline transportation, investments in oil and natural gas products, filling and storage facilities can obtain an incentive certificate only for expenditures related to fixed facilities, excluding distribution vehicles and tubes.
3- Incentive certificates can be issued for cultural investments based on a cultural certificate obtained from the Ministry of Culture and Tourism. However, units such as food and beverage, sports, entertainment, and sales units that are built exclusively for this purpose are not included in the scope.
4- Non-accommodation tourism investments such as entertainment centers and themed facilities that have a tourism certificate obtained from the Ministry of Culture and Tourism may be linked to an incentive certificate. However, units built solely for this purpose, such as food and beverage, sports, entertainment, and sales units are not included in the scope.
5- An incentive certificate may be issued for fair, congress, exhibition, and performance center investments that have a Culture or Tourism Certificate obtained from the Ministry of Culture and Tourism. Fair and exhibition centers require a minimum indoor area of 5000 m2, congress centers require a minimum number of 1000 seats, and performance centers require a minimum number of 2500 seats.
6- In sports facilities investments, a minimum fixed investment requirement of 10 million TL is required.
7- In airport ground service investments, it can be included only for motor vehicles used exclusively on the apron and not in traffic. Passenger cars are not included in the project scope.
8- In aviation operations and air cargo transport investments, the aircraft to be provided must have a minimum capacity of 50 seats per unit and a minimum cargo capacity of 30,000 kg for cargo aircraft. Incentive certificates will not be issued for investments whose subject is directly aviation business and/or air cargo transportation outside of general-purpose and air taxi business investments.
9- In investments aimed at merging communication from satellites, wires, cables, etc. communication channels, radio, television and data signals into a single package for final transmission to the end consumer, the investment goods used by the end-users will not benefit from support elements.
10- Investments to be made by public institutions and organizations, municipalities, special provincial administrations, unions, cooperatives, etc. will be evaluated on a project basis, and incentive certificates can be issued.
11- In investments aimed solely at crane services, a minimum lifting capacity of 100 tons is required for each crane. Used cranes below a lifting capacity of 500 tons are not allowed for import. 12- In investments in laundry and drying, a minimum fixed investment requirement of 2 million TL applies.
13- In yacht construction investments, a minimum boat length of 24 meters is required for an incentive certificate to be issued.