REGIONAL INCENTIVE SYSTEM
Regional Incentive Schemes aim to reduce the development gap between provinces and increase the production and export potential of provinces, and aid intensities are differentiated according to the development levels of provinces. In this context, the sectors to be supported are determined by taking into account the potential and economic scale of the provinces. Within the scope of the Regional Incentive Scheme, Turkey was divided into 6 regions and then a district-based incentive system was introduced.
Within the scope of Regional Incentive Practices, the sectors determined by provinces in the annex of the “Decree on State Aids in Investments” can benefit from the following supports if they meet the minimum capacity or amounts.
Support Elements
-Investment Location Allocation
-VAT Exemption
-VAT Refund
-Insurance Premium Support
-Interest Support
-Customs Duty Exemption
-Tax Deduction
Support elements by region are in the table below
Support Elements |
Region I |
Region II |
Region III |
Region IV |
Region V |
Region VI |
||
VAT Exemption |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
||
Customs Duty Exemption |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
||
Tax Reduction |
Investment Contribution Rate |
Outside OIZ and EB |
15 |
20 |
25 |
30 |
40 |
50 |
Within OIZ and EB |
20 |
25 |
30 |
40 |
50 |
55 |
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Insurance Premium Employer Share Support |
Outside OIZ and EB |
2 Years |
3 Years |
5 Years |
6 Years |
7 Years |
10 Years |
|
Within OIZ and EB |
3 Years |
5 Years |
6 Years |
7 Years |
10 Years |
12 Years |
||
Insurance Premium Worker’s Share Support |
No |
No |
No |
No |
No |
10 Years |
||
Interest or Dividend Support |
Domestic Credit |
No |
No |
3 Points |
4 Points |
5 Points |
7 Points |
|
Foreign Currency/Foreign Exchange Indexed Loan |
1 Points |
1 Points |
2 Points |
2 Points |
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Investment Location Allocation |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Regions in Investment Incentive Practices
Region 1 |
Region 2 |
Region 3 |
Region 4 |
Region 5 |
Region 6 |
Ankara |
Aydın |
Adana |
Afyonkarahisar |
Bayburt |
Adıyaman |
Antalya |
Balıkesir |
Burdur |
Aksaray |
Çankırı |
Ağrı |
Bursa |
Bilecik |
Düzce |
Amasya |
Erzurum |
Ardahan |
Eskişehir |
Bolu |
Gaziantep |
Artvin |
Giresun |
Batman |
İstanbul |
Çanakkale(Bozcaada andGökçeadaexcept districts) |
Karaman |
Bartın |
Gümüşhane |
Bingöl |
İzmir |
Denizli |
Kırıkkale |
Çorum |
Kahramanmaraş |
Bitlis |
Kocaeli |
Edirne |
Kütahya |
Elazığ |
Kilis |
Diyarbakır |
Muğla |
Isparta |
Mersin |
Erzincan |
Niğde |
Hakkari |
Tekirdağ |
Karabük |
Samsun |
Hatay |
Ordu |
Iğdır |
Kayseri |
Trabzon |
Kastamonu |
Osmaniye |
Kars |
|
Kırklareli |
Rize |
Kırşehir |
Sinop |
Mardin |
|
Konya |
Uşak |
Malatya |
Tokat |
Muş |
|
Manisa |
Zonguldak |
Nevşehir |
Tunceli |
Siirt |
|
Sakarya |
Sivas |
Yozgat |
Şanlıurfa |
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Yalova |
Şırnak |
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Van |
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|
Bozcaada and Gökçeada |
Subregional Supports
Within the scope of Regional Incentive Schemes, the sectors to be incentivized in each province and in the districts of certain provinces and the minimum investment amounts for these sectors have been determined.
In the event that the investment is realized in an OIZ/EB or an investment that will provide integration is made by an investor who is a partner of at least 5 real or legal persons operating in the same sector, investors can benefit from these supports at the rates and periods provided in the lower region in terms of tax deduction and insurance premium employer’s share support.
Investments in products classified as medium-high technology industry according to the OECD technology intensity definition benefit from the regional supports applied in the 4th region if they are realized in the 1st, 2nd and 3rd regions, excluding Istanbul. In the province of Istanbul, regional supports in the 1st region are applied to investments of minimum 5 million TL in OIZ/EB, excluding complete new investment, to be realized in medium-high technology investment subjects, and to investments of minimum 10 million TL, excluding complete new investment, outside OIZ/EB.
Investments to be realized in the districts of the 1st, 2nd, 3rd and 4th region provinces included in Annex-7 of the “Decision on State Aids in Investments” can benefit from the regional supports provided to one sub-region of the province where the district is located, while the investments to be realized in the OIZ/EB of these districts benefit from the regional supports provided to two sub-regions of the province where the district is located.
For the investments to be realized in the districts of the 5th region provinces included in Annex-7 of the “Decision on State Aids in Investments”, the regional supports provided for the 6th region are applied, and for the investments to be realized in the OIZ/EB of these districts, the 6th region supports are applied by adding two years to the period valid in the region for the insurance premium employer’s share support, and five points to the investment contribution rate valid in the region for the tax reduction support.
Insurance premium support is not applied within the scope of these practices.
Table of Districts Eligible for Subregional Support
Adana |
Yumurtalık, İmamoğlu, Karataş, Karaisalı, Tufanbeyli, Aladağ, Feke, Saimbeyli |
Afyonkarahisar |
Kızılören, İhsaniye, Bayat, Sinanpaşa, Hocalar, Evciler, Çobanlar |
Aksaray |
Ortaköy, Sarıyahşi, Eskil, Ağaçören, Güzelyurt, Sultanhanı, Gülağaç |
Amasya |
Göynücek, Hamamözü |
Ankara |
Çamlıdere, Bala, Evren, Güdül, Kalecik, Haymana |
Antalya |
Akseki, İbradı, Gündoğmuş |
Aydın |
Kuyucak, Germencik, Karacasu, Sultanhisar, Köşk, Buharkent, Yenipazar, İncirliova, Bozdoğan, Koçarlı, Karpuzlu |
Balıkesir |
Savaştepe, Dursunbey, Sındırgı, Havran, Kepsut, İvrindi, Manyas, Balya |
Bartın |
Ulus, Kurucaşile |
Bilecik |
Gölpazarı, İnhisar, Pazaryeri, Yenipazar |
Bolu |
Yeniçağa, Mudurnu, Göynük, Seben, Kıbrısçık, Mengen, Dörtdivan |
Burdur |
Kemer, Ağlasun, Çavdır, Çeltikçi, Yeşilova, Tefenni, Altınyayla |
Bursa |
Harmancık, Keles, Orhaneli, Büyükorhan |
Çanakkale |
Bayramiç, Yenice |
Çankırı |
Yapraklı, Bayramören |
Çorum |
Ortaköy, Boğazkale, Uğurludağ, Mecitözü, Bayat, Oğuzlar, Dodurga, Kargı, Lâçin |
Denizli |
Babadağ, Kale, Beyağaç, Baklan, Güney, Bozkurt, Çal, Çardak, Bekilli, Çameli |
Düzce |
Çilimli, Kaynaşlı, Cumayeri, Gölyaka, Yığılca |
Edirne |
Enez, İpsala, Meriç, Havsa, Süloğlu, Lalapaşa |
Elazığ |
Kovancılar, Karakoçan, Alacakaya, Maden, Palu, Baskil, Sivrice, Ağın, Arıcak |
Erzincan |
Otlukbeli, Tercan, Kemah, Üzümlü, Çayırlı |
Erzurum |
Horasan, Hınıs, Şenkaya, Çat, Köprüköy, Tekman, Karaçoban, Karayazı |
Eskişehir |
Alpu, Günyüzü, Beylikova, Çifteler, Mahmudiye, Mihalgazi, Mihalıççık, Sarıcakaya, Seyitgazi, Han |
Gaziantep |
Nizip, İslahiye, Oğuzeli, Nurdağı, Karkamış, Araban, Yavuzeli |
Hatay |
Arsuz, Reyhanlı, Yayladağı, Hassa, Kumlu, Altınözü |
Isparta |
Şarkikaraağaç, Aksu, Gelendost, Atabey, Senirkent, Yenişarbademli, Sütçüler |
İzmir |
Bayındır, Beydağ, Kınık, Kiraz |
Kahramanmaraş |
Çağlayancerit, Ekinözü |
Karabük |
Eskipazar, Yenice, Ovacık, Eflani |
Karaman |
Kâzımkarabekir, Başyayla, Sarıveliler, Ermenek, Ayrancı |
Kastamonu |
Daday, Cide, İhsangazi, Hanönü, Azdavay, Pınarbaşı, Şenpazar, Ağlı, Araç, Küre, Doğanyurt |
Kayseri |
İncesu, Felahiye, Yahyalı, Bunyan, Yeşilhisar, Pınarbaşı, Sarıoğlan, Tomarza, Sarız, Özvatan, Akkışla |
Kırıkkale |
Karakeçili, Delice, Keskin, Sulakyurt, Balışeyh, Celebi |
Kırklareli |
Demirköy, Pehlivanköy, Kofçaz |
Kırşehir |
Akpınar, Çiçekdağı, Boztepe, Akçakent |
Kilis |
Musabeyli, Elbeyli, Polateli |
Kocaeli |
Kandıra |
Konya |
Kulu, Sarayönü, Hadim, Taşkent, Güneysınır, Hüyük, Kadınhanı, Doğanhisar, Tuzlukçu Yalıhüyük, Bozkır, Derebucak, Altınekin, Çeltik, Yunak, Derbent, Halkapınar, Emirgazi, Çumra, Akören, Ahırlı |
Kütahya |
Domaniç, Hisarcık, Şaphane, Pazarlar, Dumlupınar, Altıntaş, Çavdarhisar, Emet, Aslanapa |
Malatya |
Hekimhan, Doğanşehir, Akçadağ, Yazıhan, Doğanyol, Arguvan, Kuluncak, Kale, Pütürge |
Manisa |
Saruhanlı, Köprübaşı, Ahmetli, Gölmarmara, Demirci, Gördes, Kırkağaç, Sarıgöl, Selendi |
Mersin |
Aydıncık, Mut, Bozyazı, Çamlıyayla, Gülnar |
Muğla |
Kavaklıdere, Seydikemer |
Nevşehir |
Derinkuyu, Acıgöl |
Niğde |
Altunhisar, Çiftlik |
Ordu |
Akkuş, Çatalpınar, Çaybaşı, Gürgentepe, İkizce, Mesudiye |
Osmaniye |
Sumbas |
Rize |
Hemşin, Güneysu, İyidere, Derepazarı, İkizdere, Kalkandere, Çamlıhemşin |
Sakarya |
Kaynarca, Ferizli, Karapürçek, Kocaali, Taraklı |
Samsun |
Kavak, Havza, Alaçam, Yakakent, Vezirköprü, Salıpazarı, Asarcık, Ladik, Terme, Ayvacık |
Sinop |
Dikmen |
Sivas |
Akıncılar, Zara, Gölova, Kangal, Ulaş, Altınyayla, Hafik, Yıldızeli, Doğanşar, İmranlı, Koyulhisar |
Tekirdağ |
Hayrabolu |
Tokat |
Başçiftlik, Sulusaray |
Trabzon |
Çarşıbaşı, Araklı, Şalpazarı, Dernekpazarı, Tonya, Köprübaşı, Hayrat, Düzköy |
Uşak |
Banaz, Karahallı, Ulubey, Sivaslı |
Yozgat |
Kadışehri, Aydıncık |
Zonguldak |
Kilimli, Gökçebey |