Agenda

DECREE NO. 9903 ON STATE AIDS IN INVESTMENTS

04/06/2025

The new investment incentive system entered into force with the Decree No. 9903 dated 29.05.2025 published in the Official Gazette dated 30.05.2025 and numbered 32915. The referred Decree aims to update the investment incentive system, support investments in priority areas, accelerate domestic production and technological transformation and reduce regional development disparities. The new system prioritizes a product and sector-oriented incentive model, project-based evaluation and digital/green transformation.

The Decree on State Aids in Investments, which was put into effect by the Decree of the Council of Ministers dated 15/6/2012 and numbered 2012/3305, and the Decree on Supporting Investments within the Scope of the Attraction Centers Program, which was put into effect by the Decree of the Council of Ministers dated 2/1/2018 and numbered 2018/11201, have been repealed.

Support Elements Provided by the New Incentive System

One of the most striking changes in the new incentive system is the inclusion of machinery and equipment support among the support elements to be provided to investment projects. This change aims to encourage investors to strengthen their technological infrastructure and increase their production capacity. The new incentive system, which entered into force under the main programs, offers differentiated support items according to regional, sectoral and strategic priorities, and is based on criteria such as the potential of investments to create added value, the level of technology and their contribution to employment. The main support elements that can be provided under the new system are listed below:

  • VAT Exemption: It is applied in the form of non-payment of value added tax for investment machinery and equipment to be procured domestically and from abroad within the scope of the Investment Incentive Certificate.
  • Customs Duty Exemption: It is the application of 0% of the customs duty rate required to be applied in accordance with the current Import Regime Decree for investment machinery and equipment to be procured from abroad within the scope of the Investment Incentive Certificate.
  •  Tax Reduction: It is the application of income or corporate tax with a 60% discount until the contribution amount foreseen for the investment is reached. Tax deduction can be calculated on the earnings from other activities, not exceeding 50% of the investment contribution amount.
  •  Interest or Profit Share Support: Coverage of a certain portion of the interest or profit share to be paid for the loan used up to 70% of the fixed investment amount registered in the incentive certificate.
  • Investment Site Allocation: Allocation of investment space for investments for which an Investment Incentive Certificate has been issued within the framework of the procedures and principles determined by the Ministry of Environment, Urbanization and Climate Change.
  •  Insurance Premium Employer Share Support: Coverage of the entire portion of the employer's share of the insurance premium corresponding to the minimum wage for the additional employment provided by the investment within the scope of the Investment Incentive Certificate in the 6th region and half in other regions.
  • Insurance Premium Support (6th Region Only): The Ministry covers the portion corresponding to the minimum wage of the employer's share of the insurance premium that must be paid for the additional employment provided by the investment within the scope of the Investment Incentive Certificate.
  • Machinery Support: It is the payment by the Ministry of 25% of the cost of machinery and equipment provided within the investment period of the incentive certificate, excluding other costs, with a unit price of 2 million Turkish liras and above.

The new incentive system consists of three main programs:

  • Development Movement for Turkey's Century
  • Sectoral Incentive System
  • Regional Incentive

1. Development Movement for Turkey’s Century

Turkey's Century Development Initiative: It consists of three programs, the Technology Move Program, the Local Development Move Program and the Strategic Move Program.

Supports

Technology Move

Local Development Move

Strategic Move

VAT Exemption

 ✓

Customs Duty Exemption

Corporate Tax Reduction

     

Investment Contribution Rate (%)

50%

50%

40%

Tax Reduction Rate (%)

60%

60%

60%

Social Security Premium – Employer Share

8 years (12 years in Region 6)

8 years (12 years in Region 6)

8 years (12 years in Region 6)

Social Security Premium Support

Only in Region 6 – 10 years

Only in Region 6 – 10 years

Only in Region 6 – 10 years

Interest or Profit Share Support**

     

Support Rate

40%

40%

30%

Maximum Support Amount

TRY 240 million

TRY 240 million

TRY 180 million

Maximum Support as % of Investment

20%

20%

15%

Machinery Support*

 

 

 

Support Rate

25%

25%

25%

Maximum Support Amount

TRY 240 million

TRY 240 million

TRY 180 million

Maximum Support as % of Investment

15%

15%

15%

Investment Land Allocation

*Machinery support is not available for investments that benefit from interest or profit share support.

**Interest/profit share support rate is calculated based on the CBRT’s one-week repo auction interest rate valid on the loan disbursement date.

1.1. ) Technology Move:

The Technology Move Program is an investment incentive program that aims to increase Turkey's domestic production capacity in critical technology areas and to develop high value-added products. Under this program, investments in medium-high and high-tech products and technologies are supported. Investments are evaluated within the scope of the program carried out by the General Directorate of Strategic Research and Productivity under the Ministry of Industry and Technology. In order for investments to be supported, the relevant product or technology must be included in the priority product list published by the Ministry. The list can be updated every year in January. The projects to be supported are examined on a project-by-project basis by the Technology Move Program Evaluation Committee.  A project-based incentive certificate is issued for investments deemed appropriate by the Committee.

VAT exemption and customs duty exemption are available under the Technology Move program. Investment contribution rate is 50% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied for 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitations for interest and profit share support.  Interest or profit share support is limited to 40% of the interest, 20% of the investment amount and a maximum of 240 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the cost of machinery and equipment, 15% of the investment amount and a maximum of 240 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are supposed to prefer only one of these two support elements.

1.2) Local Development Move:

The Local Development Move Program is an investment incentive program designed to reduce regional development disparities across Turkey, increase local production capacity and encourage employment. This program supports investments that will increase value-added production and regional competitiveness, especially in less developed regions. The investments to be supported under the program are determined by taking into account the priority product and sector lists created by the Ministry of Industry and Technology and determined for each province. Applications are evaluated on a province-based and sector-oriented basis. Eligible projects are reviewed on a project-by-project basis by the Local Development Move Program Evaluation Committee. When the investment project is approved, a project-based incentive certificate is issued.

VAT exemption and customs duty exemption are available under the Local Development Move program. Investment contribution rate is 50% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied for 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitation factors for interest and profit share support.  Interest or profit share support is limited to 40% of the interest, 20% of the investment amount and a maximum of 240 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the cost of machinery and equipment, 15% of the investment amount and a maximum of 240 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are restricted to choose only one of these two support elements.

1.3) Strategic Move Program:

The Strategic Move Program is an incentive mechanism that supports investments in critical products and technologies in order to strengthen Turkey's economic and technological independence. This program supports investments to improve domestic production in strategic sectors with high foreign dependency by evaluating them on a project basis. Within the scope of the program, investments within the scope of the Digital Transformation Program and the Green Transformation Program can be supported, as well as investments in the manufacturing sector with high added value, which will meet the critical needs of our country, ensure supply security, reduce foreign dependency, increase international competitiveness and high research and development content. Investments to be supported under the green transformation program and digital transformation program with a minimum amount of 50 million TL can be supported under this program without an evaluation process. The minimum fixed investment amount is set as 100 million TL for high-tech investments and 200 million TL for other investments.

VAT exemption and customs duty exemption are available. Investment contribution rate is 40% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied as 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitations for interest and profit share support.  Interest or profit share support is limited to 30% of the interest, 15% of the investment amount and a maximum of 180 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the machinery and equipment, 15% of the investment amount and a maximum of 180 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are required to choose only one of these two support elements.

2. Sectoral Incentive System

Sectoral Incentive System: Consists of two programs: Priority Investments and Target Investments.

Supports

Priority Investments

Target Investments

VAT Exemption

Customs Duty Exemption

Tax Reduction

 

 

Investment Contribution Rate (%)

30

20

Tax Reduction Rate (%)

60

60

Employer's Share of Social Security Premium Support

Gradual by Region 1–6: 0 – 1 – 2 – 4 – 8 – 12 years

Employee's Share of Social Security Premium Support

Only applicable in Region 6: 10 years

Interest or Dividend Support*

 

 

Support Rate**

25%

25%*

Maximum Support Amount

TRY 24 million

TRY 12 million*

Maximum Support Rate

10% of the investment

10% of the investment*

Investment Land Allocation

* Applicable only in Regions 4, 5, and 6.

** Refers to the rate to be applied over the CBRT one-week repo auction interest rate valid at the time of loan utilization

2.1) Priority Investments:

The “Digital Transformation Program”, which aims to achieve results such as cost reduction, productivity and quality increase through technological products and solutions, and the “Green Transformation Program”, which aims resource-efficient and low-carbon production that is compatible with the circular economy, protects natural resources, contributes to sustainability goals, and is resource efficient, are supported within the scope of priority investments. In addition, many sectors such as R&D, high and medium technology products, mining, defense industry, data center, nuclear energy, health, education, elderly/disabled care services are supported. The minimum fixed investment amount is 12 million TL in Regions 1 and 2, and 6 million TL in Regions 3, 4, 5 and 6.

VAT exemption and customs duty exemption are available in the Priority Investments program. Investment contribution rate is 30% and tax deduction is available. Insurance premium employer's share support increases gradually according to regions.  Insurance premium support is only available in Region 6 and lasts for 10 years. There are three limitations for interest and profit share support.  Interest or profit share support is limited to 25% of the interest, 10% of the investment amount and a maximum of 24 million Turkish liras.

2.2) Target Investments:

Many sectors such as agriculture, forestry and fishing, mining, manufacturing, electricity, gas, steam and air conditioning production and distribution, transportation and storage, and education are supported within the scope of target investments. The minimum fixed investment amount is 12 million TL in Regions 1 and 2, and 6 million TL in Regions 3, 4, 5 and 6.

VAT exemption and customs duty exemption are available in the Target Investments program. Investment contribution rate is 20% and tax deduction is available. Insurance premium employer's share support increases gradually according to regions.  Insurance premium support is only available in Region 6 and lasts for 10 years. There are three limitations for interest and profit share support.  Interest or profit share support is limited to 25% of the interest, 10% of the investment amount and a maximum of 12 million Turkish liras. Under the Target Investments program, investments in electricity generation, electricity distribution, electricity storage and distribution of gaseous fuels through the main grid are not eligible for tax deductions and interest and dividend support.  Investments to be realized in the province of Istanbul are also not eligible for tax reduction support.

3. Regional Incentives

Investments supported within the scope of Turkey's Century Development Move and Sectoral Incentive System may benefit from insurance premium employer's share support and insurance premium support (for investments to be realized in the 6th region) according to the region of the investment. In addition, investments made in organized industrial zones or industrial zones and investments made in the districts specified in Annex-5 of the Decree may benefit from this support under the conditions and duration provided in one sub-region of the region in terms of support for employer's share of insurance premium, and investments that meet both conditions may benefit from this support under the conditions and duration provided in two sub-regions of the region in which they are located.

 

Regions in Investment Incentives

Region 1

Region 2

Region 3

Region 4

Region 5

Region 6

Ankara

Aydın

Adana

Afyon

Bartın

Adıyaman

Antalya

Balıkesir

Bilecik

Aksaray

Bayburt

Ağrı

Bursa

Bolu

Burdur

Amasya

Çankırı

Ardahan

Eskişehir

Çanakkale

Düzce

Artvin

Erzurum

Batman

İstanbul

Denizli

Gaziantep

Çorum

Giresun

Bingöl

İzmir

Edirne

Isparta

Elazığ

Hatay

Bitlis

Kocaeli

Kayseri

Karabük

Erzincan

Kahramanmaraş

Diyarbakır

Muğla

Konya

Karaman

Kastamonu

Kilis

Gümüşhane

Manisa

Kırklareli

Kırıkkale

Kırşehir

Niğde

Hakkari

Mersin

Kütahya

Nevşehir

Malatya

Ordu

Iğdır

Sakarya

Tekirdağ

 

Sivas

Osmaniye

Kars

Yalova

Rize

   

Sinop

Mardin

 

Samsun

   

Tokat

Muş

 

Trabzon

   

Tunceli

Siirt

 

Uşak

   

Yozgat

Şanlıurfa

 

Zonguldak

     

Şırnak

         

Van

 

4. Other Issues

The amounts in the Decree and its annexes shall be updated every year to be effective from the beginning of the calendar year within the framework of the procedures and principles to be determined by the communiqué, taking into account the revaluation rate for the previous year. The total value of VAT exemption, customs duty exemption, tax deduction, interest or profit share support and machinery support provided under the incentive certificate, calculated with the revaluation rate based on the year of benefit, cannot exceed the actual fixed investment amount calculated by taking into account the revaluation rate.

Investments benefiting from the support elements within the scope of the Decree cannot benefit from the supports of other public institutions and organizations. For investments that have benefited or will benefit from the supports of other public institutions and organizations, an application cannot be made to the Ministry to benefit from the supports under this Decree. Investments decided to be supported under the Technology Oriented Industrial Move Program may also be directly supported by KOSGEB and/or TÜBİTAK in accordance with the relevant legislation.

The Decree on State Aids in Investments dated 15/6/2012 and numbered 2012/3305 and the Decree on Supporting Investments within the Scope of the Attraction Centers Program dated 02/01/2018 and numbered 2018/11201 were abolished from the legislation. Incentive certificate applications to be made until 31/12/2030 will be evaluated within the scope of the new incentive system.

Pursuant to the Decree, applications to be made until 31.12.2030 will be evaluated and incentive certificates will be issued after sectoral, financial and technical evaluations to be made by taking into account macroeconomic programs and supply-demand balance in order to support the investments within the scope of the Decree. 

Applications for investment incentive certificates made before the Decree will be evaluated within the framework of the legislation in force at the date of the relevant application, but may also be evaluated within the framework of the new Decree upon request.

Implementations regarding the incentive certificates issued based on previous decisions will continue within the framework of the decision on which the incentive certificate is based and other relevant decisions, and additions for capacity increase will not be included in the investment incentive certificates issued based on previous Decisions on investment issues that are not supported under this Decree.

The provisions of the Decree regarding the document layout, notification to the Ministry of the supports utilized and the comparison of the supports utilized with the total fixed investment amount will enter into force on 01.01.2026, while the other provisions entered into force on the date of its publication.

Secondary regulations regarding the Decision will be published by the Ministry of Industry and Technology in the following periods.

Click HERE to view the full announcement.

 

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