Ministry of Industry and Technology
The Ministry of Industry and Technology provides support for investments in order to reduce regional development disparities, and aims to increase high added value investments through incentives.
It aims also to improve production and employment figures, and to expand research and development activities that contribute to international competitiveness.
2 nd Region incentives are applied for investments into the manufacturing sector in Çanakkale.
Investments made in organized industrial zones are considered under 3 rd region investments.
4 th region incentives are applied for the manufacture of the products in the medium-high technology level.
Many sectors in manufacturing are regarded as preferred investment areas, and 5 th region incentives are applied for them
6 th region incentives are applied for the investments to be made on Bozcaada and Gökçeada.
Regional Incentive Implementations
- Customs Duty Exemption
No customs duties are paid for imported machinery or equipment to be provided in the case of investments made by using the incentive.
- Social Security Premium Support (Employer’s Share)
The Ministry shall pay the employer’s national contributions that are due for additional employment falling within the scope of the incentive. The amount to be paid shall be a proportion of the minimum wage.
- Land Allocation
For investments made using an incentive certificate, land allocations are carried out free of charge in order to speed up the investment process in certain cases.
- VAT Exemption
No VAT is paid on machinery or equipment purchased as part of the investment to be made by using the incentive.
- Tax Reduction
Income and corporate tax are paid at discounted rates for a period of time, considering rates applicable for the invested regions within the scope of the incentive.
- Interest Rate Support
Interest rate discount support is provided on investment loans with a maturity of at least one year as part of the incentives to encourage regional investments.
The following supports are provided by Ministry of Industry and Technology so as to support and improve R&D, innovation and entrepreneurship enabling the industry to achieve a more competitive structure
- Technopreneurship Capital Support
With the Technopreneurship Capital Support, young entrepreneurs with innovative business ideas are provided support for the stages of concept development, feasibility, laboratory work, design prototype production, pilot plant establishment, trial production and performing of type tests stages of their works.
- Industry Thesis Project Support
Within the scope of the Industrial Thesis (SAN-TEZ) Program, the Ministry provides support to SMEs, allowing them to benefit from the university collaboration culture in their R&D and innovation related activities.
- Technology Development Areas
Entrepreneurs, researchers and academicians who want to improve university-industry collaboration and to produce a new or advanced technology goods and services are provided incentives within the Technology Development Areas, allowing them to conduct industrial and commercial activities near to or around universities, and to benefit from the means of such universities.
The incentives provided for Technology Development Areas are as follows;
Income and Corporate Tax Withholding Support, Insurance Premium Support, Support for Facilitating Employment of a Foreign National Employee, Staff Wage Tax Withholding Support, Waste Water Support, R&D Investment Support, VAT Exemption, Encouraging Foreign Investors, Supports Provided to Academicians.
The Scientific and Technological Research Council of Turkey (TUBITAK)
TÜBİTAK has a number of support programs to encourage the R&D studies of companies generating added value, and in this way, is increasing the R&D capabilities of Turkish industry.
Grants are offered of up to 60 percent of the investment.
- Industry R&D Projects Support Program
- SME Start-Up Support Program for R&D
- Project Markets Support Program
- International Industry R&D Projects Support Program
Small and Medium Size Enterprises Development Organization (KOSGEB)
KOSGEB offers various subsidies in support of small-and medium-sized enterprises.
These are provided in order to enable such enterprises to expand their investments, to increase the technology utilization rates and to improve their R&D capacities.
Offering grants and loan opportunities in different ratios depending on the type of the support, KOSGEB provides many advantages to investors in the region.
- Loan Interest Scheme
- Collaboration Cooperation Support Program
- General Support Scheme
- SME Project Support Scheme
- R&D, Innovation and Industrial Application Support Scheme
- Entrepreneurship Support Scheme
- Emerging Business Market SME Support Scheme
- Thematic Project Support Scheme
- Application Support Scheme
Agriculture and Rural Development Support Institution (TKDK)
The Agriculture and Rural Development Support Institution provides supports to investors in particular fields in order to ensure the sustainable development of Turkey, to serve for the priority targets and to enable enterprises in the sector to meet EU standards. Financial contributions are provided from the co-financed funds of the European Union and the Republic of Turkey. Such investment supports are non-refundable.
- Milk, red meat, poultry meat and egg producing enterprises
- Milk, red meat, and poultry processing and marketing enterprises
- Vegetable producing and vegetable product, fruit and vegetable processing and marketing enterprises
- Bee products, processing and marketing enterprises
- Aquaculture and fishery products and processing enterprises
- Enterprises engaged in the production of ornamental plants, and medical and aromatic plants
Support provided Ministry of Energy and Natural Resources
- Productivity Enhancement Project Supports
The Ministry of Energy and Natural Resources provides support for projects that will decrease the use of energy by means of energy efficient equipment and systems, repair, insulation, modification, rehabilitation and process regulations.
- Voluntary Agreement Supports
Support is provided to enterprises that commit to, and succeed in, decreasing energy density by at least 10 percent on average at the end of a three-year monitoring period based on the reference energy intensity, which is the average energy intensity over the past 5 years.
Industrial Development Bank of Turkey (TSKB)
The TSKB serves as an investment bank, providing investors with long-term credit facilities. The Bank also acts as an intermediary for in support of such funding agencies as the World Bank and the European Investment Bank. The amounts of fund support and credit support are dependent on the project field.
European Investment Bank
The European Investment Bank offers advantageous credit facilities to SMEs.
Credits are offered to companies to encourage them to start exporting their products, with the aim being to raise export figures.
Credit Guarantee Fund
The Credit Guarantee Fund aims to increase employment, improve export figures and reduce regional development disparities by reducing the high warranty payments of SMEs on bank credits. Enterprises seeking to benefit from the Credit Guarantee Fund can proceed by filing in an application to their partnering bank.
South Marmara Development Agency
South Marmara Development Agency provides grants to SMEs, registered in Balıkesir and Çanakkale, to help them improve their competitiveness.
In a Project Call for Proposals, a SME can submit project proposals in accordance with the subjects and conditions set for the program as part of a specific support program. For the support programs that can be applied during certain periods of the year, SME support has been given to develop the industry based on agriculture and to improve the innovation and export capacities of enterprises until now. The subject and sectors to be supported may change every year for each specific program.
The submitted projects are then ranked according to the points received, and become eligible for grants depending on the program budget. Successful projects are given a grant of 50 percent. A portion of the grants is prepaid to firms in advance to help overcome initial financing problems. Further information on the active grant programs that you can apply for and current information on all grant programs is available at www.gmka.gov.tr/destekler.