What is an Investment Incentive Certificate? How to Obtain It and What Advantages Does It Provide?
Turkey, with its strategic location and growing economy, offers an attractive investment environment for both domestic and foreign investors. However, it is essential for investors to take advantage of incentives to benefit the most from this market. The Investment Incentive Certificate is a crucial tool that allows companies investing in Turkey to benefit from various government supports and advantages. As Boğaziçi Customs, we provide professional assistance at every stage of the process through our Investment Incentive Legislation Consultancy services.
What is an Investment Incentive Certificate?
An Investment Incentive Certificate is an official document issued by the government to support specific investments in Turkey. Through this certificate, investors can benefit from a wide range of supports, including tax reductions, customs duty exemptions, interest support, and VAT exemptions. The goal is to contribute to economic development by reducing regional disparities, promoting technology transfer, and increasing employment.
How to Obtain an Investment Incentive Certificate?
Obtaining an Investment Incentive Certificate requires a certain process and preparation. The steps for acquiring the certificate can be outlined as follows:
- Preparing the Investment Plan: Before applying for an Investment Incentive Certificate, it is essential to determine the sector, budget, and region where the investment will take place. Additionally, a strategic plan should be made regarding which incentive elements the investment will apply for.
- Submitting the Application: Once the investment project is prepared, an application is submitted to the relevant institutions. This application is usually made to the Ministry of Industry and Technology or other authorized bodies managing the process. At Boğaziçi Customs, we assist in ensuring the application is complete and accurate.
- Evaluation of the Application: The application is reviewed by the relevant institutions. Factors such as the investment’s contribution to Turkey’s economy, the employment it will create, and its impact on regional development are considered in the evaluation process.
- Approval of the Certificate: If the application is deemed appropriate, the Investment Incentive Certificate is approved. With this certificate, the investor can start benefiting from the specified incentive elements.
- Monitoring the Investment Process: From the moment the investment process begins, inspections are carried out regarding the use of the incentive elements. It is ensured that the investment complies with the conditions specified in the incentive certificate.
Advantages of the Investment Incentive Certificate
The Investment Incentive Certificate provides many financial and operational advantages. These advantages may vary depending on the nature, region, and size of the investment. The general advantages offered are as follows:
- Tax Reductions: Investors can benefit from significant reductions in income tax and corporate tax, thereby lowering operational costs and shortening the return on investment period.
- Customs Duty Exemption: Machinery and equipment to be imported for the investment can be exempted from customs duties. This is a significant advantage, especially for investments involving high technology.
- VAT Exemption: Domestic and imported machinery purchases for the investment are exempt from VAT, reducing overall investment costs.
- Interest Support: The state may provide interest support for loans to be used in the investment process. This is a substantial financial support, especially for small and medium-sized enterprises (SMEs).
- Allocation of Investment Land: The government may allocate land for strategic sector investments, allowing investors to secure suitable locations at lower costs.
The Role of Boğaziçi Customs in the Investment Incentive Process
At Boğaziçi Customs, we offer comprehensive consultancy services to investors in need of assistance during the application process for the Investment Incentive Certificate. From preparing the necessary documents to selecting the appropriate incentive elements and tracking the application, we provide professional support at every step. With our experienced team, we help minimize potential risks and ensure that investors maximize the benefits of the incentives.
The Investment Incentive Certificate is a powerful tool for companies looking to invest in Turkey. With the right application and strategic planning, you can leverage these incentives to reduce investment costs and accelerate your business processes. Boğaziçi Customs is here to support you with our Investment Incentive Legislation Consultancy services throughout this process.
