Country:Turkey
Year:2014
Policy status:In Force
Jurisdiction:National
Date Effective:2014
Policy Type:Economic Instruments
Policy Target:Industry
Agency:Ministry of Economy
URL:http://www.ekonomi.gov.tr/portal/faces/home/yatirim/yatirimTesvik/yatirimTesvik-Genel_Bilgi;jsessionid=oLP0F7mC251ged_zcM9RUGyAGSUAWBAGTvHhhI1orBQkYnngt1RT!2138
Description:

The Council of Ministers has decided to encourage EE investments of existing manufacturing industrial plants for over 1 million TL. Incentives would cover from VAT and custom duty exemption, tax reduction and social security premium to interest support and land allocation.

The Resolution of the Council of Ministers numbered: 2014/6058 that took effect upon publication in the Official Gazette dated: 9 May 2014 and numbered: 28995, resolved to incent some energy investments. The energy investments to be incented:

  • Application : Manufacturing industrial plants consuming annually 500 TOE energy
  • Maximum Payback Period : < 5 Years
  • Project Cost : Over 1 million TL 
  • Energy Saving : 20% per unit product 

The 5th Region Incentives to be Benefited From:

  • Value-Added Tax Exemption ( Value added tax will not be paid for investment commodities, machinery & equipment that will be obtained domestically or from abroad within the scope of the incentive certificate) 
  • Customs Duty Exemption ( Customs tax will not be paid for investment commodities, machinery & equipment that will be obtained from abroad within the scope of the incentive certificate) 
  • Tax allowance ( Application of the income or the corporate tax with discount until it reaches the contribution amount envisaged for the investment (the contribution amount to investment for the 5th Region is 30%; the rebate ratio for the income or the corporate tax is 70%)
  • Insurance premium employer share support ( Interest Support represents a financial support provided for instrument credits, which have maturities of at least one year and which are utilized within the scope of the incentive certificate, and the Ministry will, up to 70% of the fixed investment amount registered in the incentive certificate, meet a certain portion of the interest or profit share that are to be paid for such credits utilized (five points in Turkish Liras for regional investments made in the 5th region and two points for foreign exchange credits and credits on foreign exchange index) 
  • Interest Support ( Interest Support represents a financial support provided for instrument credits, which have maturities of at least one year and which are utilized within the scope of the incentive certificate, and the Ministry will, up to 70% of the fixed investment amount registered in the incentive certificate, meet a certain portion of the interest or profit share that are to be paid for such credits utilized (five points in Turkish Liras for regional investments made in the 5th region and two points for foreign exchange credits and credits on foreign exchange index) 
  • Land allocation for investment ( Allocation of an investment place for investments for which an Incentive Certificate has been issued, and within framework of the principles and procedures established by the Ministry of Finance) 
25 Energy Efficiency Recommendations Applied:Industry

Last modified: Mon, 30 Oct 2017 13:38:57 CET