Strategic Investments

The Strategic Investment Incentive Scheme of the New Investment Incentive Program that will contribute to the transformation of Turkey’s production structure aims to promote the production of intermediate goods or products with low production capacity and high import dependence, in particular. Regardless of the region, more advantageous supports are offered to these investments compared to those offered by the Regional and Large Scale Investment Incentive Schemes. 

There is no exclusive list of strategic investment subjects. Investment projects which satisfy all criteria serving for the purposes of the scheme are regarded as strategic investments.  A project that meets the following criteria can be supported within the scope of the Strategic Investment Incentive Scheme: 

• Minimum fixed investment shall be 50 million TL,
• The domestic production capacity for the product(s) to be manufactured with the investment shall be less than the import of that product(s),
• The  added value brought with the investment shall be minimum 40% (excluding the refining and petrochemical investments),
• The total import value of the product(s) to be manufactured with the investment shall be minimum 50 Million $ as of the past one year (excluding the products that are not manufactured domestically).

More than 50% of supply deficit in the production of goods supported by this scheme, which is a key prerequisite for the supporting these investments, means that total annual domestic production capacity for a specific good is less than the total import of this good for the same period. Details about the domestic production capacity and import figures of the relevant product in the feasibility report submitted by the investor during application are checked by the Ministry of Economy through relevant institutions and organizations.  
Generation of 40% added value, which is another prerequisite, refers to the ratio of the amount derived by subtracting the total product input costs from the total sales amount, to the total product input cost.

Investments supported by the Strategic Investment Incentive Scheme have the opportunity to benefit from more advantageous support measures than those offered by other schemes. This scheme significantly extends supports at the same terms and rates to all investment projects that satisfy the aforementioned criteria, regardless of the region where they are implemented. In addition to this, it offers more advantageous rates and terms to the investments in Region 6. Supports granted within the scope of the Strategic Investment Incentive Scheme are as follows:

Investments in Region 6 made as part of the Strategic Investment Incentive Scheme can benefit from SSP Support for Employer’s Share for 10 years instead of 7 years, SSP Support for 10 years and Income Tax Withholding Support for 10 years. Unlike the projects supported by other schemes, investment projects with investment amounts of 500 million TL and more can receive a VAT Refund for their building/construction expenses.

Additionally, investors supported by the Strategic Investment Incentive Scheme can use 80% of the contribution rate to investment availed through Tax Deduction in Region 6, and 50% in others before their investments are completed. An investor benefiting from this scheme can use a certain portion of the tax deduction set in the following table as per the regions, for the revenues generated from all other activities during the investment period.