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REGIONAL INCENTIVE SYSTEM

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
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
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 and
Gökçeada
except 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
Yalova
Şırnak
Van
 
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

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