For investments covered by the incentive certificate, a tax reduction equal to a certain percentage of the realized investment amount is provided, accelerating the investment payback.
Tax reduction support is an incentive element that significantly reduces the Corporate or Income Tax payable by businesses, both during the investment period and the operating period.
Contribution rates ranging from 15% to 65% are applied depending on the investment region. This rate represents the amount of cost the state shares in the investment through tax reduction.
Example tax reduction scenarios applied according to Turkey's 6 incentive regions:
Tax reduction continues to be applied from the investment period through the operating period after the investment is completed. Tracking the incentive-eligible investment in the accounting records is essential.