Minister Şimşek and Kacır evaluated the new investment incentive system.

31.05.2025 19:10

Evaluating the new incentive system that has officially come into effect with its publication in the Official Gazette, Minister of Industry and Technology Mehmet Fatih Kacır stated that incentives and cash support of up to 240 million lira will be provided for investment loans and machinery purchases. Minister of Treasury and Finance Mehmet Şimşek also said, "Our support for investment in productive sectors and regional development will continue to strengthen."

"The Presidential Decision on State Aids in Investments" has been published in the Official Gazette. Minister of Industry and Technology Mehmet Fatih Kacır evaluated the new incentive system through a post on his social media account.

"WE WILL PROVIDE FINANCIAL SUPPORTS TO ACCELERATE INVESTMENTS"

Kacır, wishing the new investment incentive system to be beneficial, stated, "We will provide financial supports to accelerate investments. We will offer incentives of up to 240 million lira with an interest-profit share support of 11.5 to 18.4 points for investment loans, covering 20% of the investment amount." He emphasized that the financial burden on investors will decrease and their appetite for investment will increase, highlighting that the new incentive system will be more selective and focused.

"WE WILL OFFER INCENTIVES OF UP TO 240 MILLION LIRA"

Kacır drew attention to the strongest supports they will provide under the "Turkey Century Development Initiative" program, stating: "We will provide differentiated incentives for high value-added investments within the scope of the Technological Leap, 4 investment topics specific to each city under the Local Development Initiative, and investments aimed at improving the foreign trade balance determined by the strategic initiative, as well as 'digital and green transformation' investments. For investments made with own resources for machinery purchases under the Turkey Century Development Initiative, we will provide cash support of 25% of the machinery cost, 15% of the investment amount, and up to 240 million lira. In the new incentive system, the corporate tax reduction we offer as a contribution to investment will be between 20% and 50% of the investment amount."

"WE WILL PROVIDE EMPLOYMENT INCENTIVES AT HIGHER LIMITS AND FOR LONGER PERIODS"

Kacır, stating that they will gradually implement employment incentives in 6 regions in line with the updated Socio-Economic Development Index, indicated that they will offer employment incentives at higher limits and for longer periods. He also mentioned the support to be provided in the earthquake-affected areas, saying, "The provinces in the 6th Region, which are severely affected by the earthquake, and the provinces in the Attraction Centers Program will be the places benefiting the most from employment incentives. The government will cover the employer's share of the SGK premium for workers in organized industrial zones in these areas for 14 years and the employee's share for 10 years. By providing an advanced regional incentive to 289 districts that are significantly less developed than the provincial centers, we will spread development and prosperity more rapidly across the country." he evaluated.

"WE HAVE ADDRESSED INVESTMENTS UNDER TARGET SECTORS"

Emphasizing that they have removed inefficient investments from the incentive system in sectors with excess capacity, Minister Kacır stated that they have addressed the investments they will support under the target sectors in the new incentive system. Kacır announced that they will not support investments in sectors and product groups that are not defined in the programs, stating: "We have ended the General Incentive System. Thus, we have removed the customs duty exemption for machinery and equipment used in investments in sectors and products not included in the incentive system. We have protected our domestic machinery manufacturers. For investments under the Turkey Century Development Initiative, land will be allocated under suitable conditions in the reserved areas created in organized industrial zones. We will apply the employment incentives in the region where the investments are made for the machinery and equipment moved from the 1st Region (the provinces with the highest socio-economic development level) to the 4th, 5th, and 6th regions. This will facilitate the relocation of industrial facilities, especially from the Marmara Region to Anatolian cities. By offering the more advanced incentives we apply in upper region provinces for investments made in organized industrial zones and industrial regions, we will support planned industrialization. The new investment incentive system will last until December 31, 2030."

MINISTER ŞİMŞEK: OUR SUPPORTS WILL CONTINUE TO STRENGTHEN

On the other hand, Minister of Treasury and Finance Mehmet Şimşek also shared on his social media account regarding the new incentive system, stating, "May our new Investment Incentive System, which is more selective, focused, and effective, be beneficial. Our supports for investment in productive sectors and regional development will continue to strengthen."

WHAT IS THE NEW INCENTIVE SYSTEM?

With the "Presidential Decision on State Aids in Investments" published in the Official Gazette with the signature of President Recep Tayyip Erdoğan, it is aimed to encourage high value-added investments that will increase production and employment in line with the targets set in development plans, meet Turkey's critical needs, ensure supply security, reduce external dependency, and enhance international competitiveness. Additionally, it aims to support investments aimed at accelerating the green and digital transformations of businesses, increasing international direct investments, and reducing regional development disparities.

With the new system, financial and employment supports will also increase. Under the strategic initiative, cash supports of up to 180 million lira and 15% of the investment amount will be provided, along with a corporate tax incentive of 40% of the investment amount. The employer's share of the insurance premium for employees created by the investment will be covered for 8 years. There will be an opportunity for land allocation under suitable conditions in the reserved areas created in organized industrial zones. Cash supports of up to 240 million lira and 20% of the investment amount, as well as a corporate tax incentive of 50% of the investment amount, will be provided under the technology and local development initiatives.