Free Zone Tax and Other Advantages
|1- Tax advantage for manufacturer companies;|
Corporate Income Tax: The profits from the sale of the products produced by the companies producing their activities in accordance with the license are exempt from Corporate Tax.
Employee Fee Income Tax Exemption: The wages paid to the personnel employed by the users who export at least 85% of the FOB price of the products produced in free zones are exempt from income tax.
Stamp Tax Exemption: The papers issued to the activities of the companies in the free zones in the region are exempt from stamp duty and fees..
|2- Advantage of profit transfer|
Earnings and income from free zone activities,
that can be freely transferred to overseas countries or Turkey without a permit.
| 3- Easy trade and VAT advantage|
Foreign trade regime provisions apply in trade between free zones with other areas of Turkey. In other words, Turkey from the free zone of goods sold for export regimes, sold by free zones to Turkey goods subject to the import regime, free zone users export prices from Turkey (without VAT) can buy goods and services. On the other hand, foreign trade regime provisions do not apply between free zone with other countries and other free zones. In addition, to ensure the supply of consumables as soon as possible of fee not exceeding $ 5,000 or its equivalent in Turkish Lira that Turkey originated goods may not be subject to optionally export transactions.
|4- Advantage of not paying customs duty|
Delivered in a free zone for goods originating in Turkey or the EU, customs duty at the entrance to Turkey or EU member states will not be paid. Also at the entrance to the free zone of goods originating in third countries and these goods in Turkey or if the customs duty to be sent to third countries outside the EU member states will not be paid.
However, free zones to Turkey or EU countries at the rate specified in the Common Customs Tariff originating in third countries for free circulation of goods not paid to countries.
|5- Provision of free circulation documents required by EU and Customs Union criteria|
Free zones which considered as “Turkey-EU Customs Union”, from regions Turkey or EU regulated that A.TR Certificate of products in free circulation in Turkey is possible to send the case to the EU. Products originating from third countries can be sent to the EU by issuing A.TR Certificate after customs duty is paid to Free Zone Customs Directorate on the rate specified in Common Customs Tariff.
|6- Other Advantages|
– All the domestic and foreign companies benefit equally from the incentives and advantages provided in the free zone. Operators and users may also benefit from non-tax incentives determined by the Council of Ministers in their investment and production phases.
– Goods may remain in the free zone without time limitation.
– Legislation on customs and exchange obligations with except for the demands of producers, price, quality and standards related to the authority given to public institutions and organizations are not applied in free zones.
– All kinds of payments related to activities in free zones are made in foreign currency. This situation allows firms to make inflation accounting.
– The Port, provides logistic advantage due to its proximity to airports and international road networks.
The period for the activity license of the companies operating in the free zone is as follows.
- 15 years for tenant-user firms leasing ready workplace,
- 20 years for manufacturer-tenant-user firms renting ready workplace,
- 30 years for investor-user firms who built their own businesses,
- 45 years for manufacturer-investor-user firms that build their own workplace,
On the other hand, investor users can rent or lease land, land and buildings that are the private property of the Treasury, or they can have easement right up to 49 years.
The costs of renting the workplaces in free zones and their suitability for transportation, transportation possibilities and additional investment requirements can be considered as disadvantages.
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