Foreign Investment Incentive Application;
It has become a diverse and dynamic area for both domestic and foreign investors and entrepreneurs in Turkey. Various government supports and incentives are offered in Turkey to encourage and provide competitive advantage to domestic and foreign investors.
CIRCULAR ON THE IMPLEMENTATION AND MONITORING OF INTRA-YEAR TRANSACTIONS OF THE 2024 INVESTMENT PROGRAM HAS BEEN PUBLISHED.
Within the framework of the Presidential Decree No. 13, the Presidential Decree No. 8082 on the acceptance and implementation of the 2024 investment program and the provisions in the relevant legislation, the list regarding the intra-year operations and monitoring of the projects included in the 2024 investment program has been published and applications will be made accordingly.
Applications are being accepted for the 2024-2026 Investment Program. The investment program name is HİT – 30.
The HİT-30 program is a strategic move to realize Turkey’s goal of becoming a global center for high-tech production by 2030. Within the scope of the program, it is envisaged to provide comprehensive support and incentives worth 30 billion dollars to special projects in high-priority technology areas.
The purpose of this document is to exempt investors from various costs they incur during the investment process at certain rates. The document allows the investment to be realized with the least cost by waiving certain receivables from the state.
The grant to be requested from the investment should be specified; Interest Support, Income Tax Withholding Support 10 Years, VAT Exemption, Insurance Premium Support 5 Years, Insurance Premium Employer Share 7 Years, Tax Reduction 90%, Investment Contribution Rate 50%.
FOR CASH GRANT SUPPORTS; Investment Incentive Certificate must be obtained.
The investment will be domestic or foreign, its subject and location, and the number of people employed must be stated.
Investment incentive certificates obtained may be canceled if the CONDITIONS ARE NOT FULFILLED.
In the investment incentive to be obtained, land allocation and land donation extend the request process. Organized industrial zones may be included in the request. If there is, it may be easier to include the equipment of a rented area in the incentive.
The first stage starts with the preparation of the feasibility report by experts and the guarantee that the investment will be made.
Process: A process starting from scratch covers a period of 6 months.
Service payment to be made; The feasibility report is a detailed report of 300 pages and the minimum amount is 50,000 EURO.
It is a minimum of 50,000 TL per month and a share of 1.5% of the total incentive.
The reports and requests to be prepared will be subject to negotiation by the employees of the Ministry of Industry and Technology of the Republic of Turkey. The reasons for the requested grants and supports will be explained by consultancy experts.
Major Investment Supports has been positioned in the status of major incentives. The conditions have been simplified with the presidential decree and it includes a grant of 30 billion dollars.
Accordingly, the first priority should be determined for the product to be produced and the application will be made with this product code.
It will refer to the HIT-30 subjects. The grant is evaluated within the scope of invitation, call or strategically important products. If the product reduces imports and encourages the use of domestic raw materials, it will have priority.
Process;
- Preparation of the feasibility report
- Presentation and meetings
- Convincing the subordinate staff
- Acceptances on the GM side
- Acceptance of the Efficiency GM Presidency
- Proving the technical and sectoral impact planning
- Determination process of domestication rates
- Monitoring that the right investment has been made
Finally, the file is uploaded to the system and its accuracy is guaranteed by the consultants. It is submitted for the approval of the Presidency.
100 million TL in cash can be received, there is no upper limit for the total support amount for a project.
Afterwards, the follow-up and three-month reporting process will continue.
The purchase of the products and machines in the incentive list and the submission of their invoices and the follow-up and implementation process of the collection will take an average of 3 years. Reporting will continue during this process. The consultancy share from the payment received is collected at the same rate.
Qualified employment will be in the investment incentive. Accordingly, it will be possible to recruit high-salary personnel.
There is no requirement for the investment to be made by a foreign or Turkish partner. However, a strong domestic investor provides support in providing decision-making in the incentive. However, if the foreign investor has proven itself in terms of product and service, this domestic partner does not need to be sought.
In the investment incentive request, receiving only labor support from Turkey for foreign investments will not be a suitable situation for investment incentive acceptance. If the domestic product domestic contribution is 40%, the incentive will be easier.
The foreigner will receive domestic incentive according to the amount of investment he brings to Turkey. For example, an investment of two billion TL will receive an additional 60% corporate tax exemption. As this investment increases, the incentive rate will also increase.
In other words, the foreign investor will increase the incentive he will receive from the state at the same rate as the amount of investment he can make in domestic capital.
Increasing an existing production is also not suitable for this incentive. This incentive is a grant program that only supports new foreign investments.
A meeting will be held with the participation of our experts for details.
