What is an Investment Incentive License?
An Investment Incentive License is a certificate given by the Ministry of Economy for the purpose of directing savings towards value added investments in terms with targets proposed in development plans and yearly schedules, to increase production and employment, regional and large-scale investments and strategic investments with a high level R&D content to encourage international competitiveness, to increase direct international investments, minimizing differences of regional development, to support investments towards clustering and protecting the environment and to support R&D activities.
Investors may apply for an Investment Incentive License for completely new facilities, further investment to existing facilities, to renovate their existing facilities, to increase the product variety and to manufacture new products to integrate them into their existing products.
Affiliates of local or foreign companies having an Investment Incentive License may take advantage of;
- support for implementation of specific reduced rates of Income or Corporate Taxes,
- support for reduced interest rates for loans provided by Intermediaries,
- support for Insurance premium employer’s part,
- support for Insurance premium employee’s part,
- support for Employee Income Tax Deductions,
- support for industrial location assignment in large scale investments,
- Customs Tax Exemption on imported products,
- Value Added Tax exemption at machinery and equipment deliveries supplied from local and foreign companies,
- support for Return of Value Added Tax for large scale investments in all their investment activities.