Tax & Incentives

1. Corporate Tax Exemption:
   • Manufacturing companies operating in Free Zones are exempt from corporate tax on income derived from the sale of goods produced within these zones. This exemption remains in effect until the end of the taxation year in which Turkey becomes a full member of the European Union.
2. Value Added Tax (VAT) Exemption:
   • Transactions within Free Zones are generally exempt from VAT. This includes:
     • Goods and services procured from Turkey for use in the Free Zones.
     • Logistical services supplied to third countries.
     • Infrastructure services such as electricity, water, gas, and telecommunication provided within the zones.
3. Customs Duty Exemption:
   • Goods imported into Free Zones are exempt from customs duties. This applies to:
     • Machinery and equipment supplied from abroad for use in the zones.
     • Goods of third-country origin entering the Free Zones or being exported to countries other than Turkey or the EU.
4. Income Tax Exemption on Employee Wages:
   • For manufacturing companies that export at least 85% of the FOB value of the goods they produce in the zones, the wages of their employees are exempt from income tax until the end of the taxation year in which Turkey becomes a full member of the European Union.
5. Stamp Duty and Fee Exemption:
   • Transactions and documents related to activities carried out by manufacturing users in the zones are exempt from stamp duties and fees.
6. Property Tax Exemption:
   • No property tax is levied on buildings or land within the Free Zones.
7. Profit Repatriation:
   • Revenues and earnings from Free Zone activities can be freely transferred to Turkey or abroad without any restrictions or the need for permission.
8. Customs Procedures Simplification:
   • Goods sold from Turkey to Free Zones are treated as exports, allowing Free Zone users to purchase goods and services from Turkey without paying VAT.
   • Trade between Free Zones and third countries is not subject to the standard foreign trade regime, facilitating easier international transactions.
9. Operational Flexibility:
   • Goods can remain in the zones without any time limitations, providing flexibility in inventory management.
   • Sales to the domestic market are permitted, with the exception of consumer and risky products, allowing businesses to adapt to market demands.

These incentives are designed to create a favorable business environment, encouraging both domestic and foreign investors to engage in export-oriented activities within Turkey's Free Zones.