Opportunity to Benefit from Tax Advantages for Manufacturer Users
Until the end of the taxation year including the date Turkey becomes a full member of the European Union, the earnings of the manufacturer users, generated through the sales of the goods they produced in the free zones, are exempted from the income or corporate taxes.
The wages of the workers employed by the users that export at least 85 percent of the FOB value of the goods they produce in the free zones are exempted from income tax. The Council of Ministers can reduce this rate to 50 percent.
The transactions and arranged documents related to the activities carried out in the zones by the manufacturer users are exempt from stamp duties and fees. The free zone users that obtained “operating license” other than “production” before 06/02/2004, the income or corporate tax exemption continues during the validity period of the Operating License.
The free zone users that obtained operating license other than production after 06/02/2004 do not enjoy income or corporate tax exemption.
Opportunity of Medium and Long Term Planning
The validity period of an operating license:
• 15 years for tenant users.
• 20 years for manufacturer tenant users.
• 30 years for users who build their own working premises (investor users).
• 45 years for manufacturer-investor users.
Opportunity to Transfer Profits.
The revenue and earnings from free zone activities can be freely transferred to Turkey or abroad without any permission.
Facilitation of Foreign Trade
Since the goods sold from Turkey to free zones are subject to export regime, free zone users can buy goods and services from Turkey without paying value-added tax. On the other hand, trade between free zones and third countries is not subject to foreign trade regime.
Moreover, upon request, goods of Turkish origin in value less than 5000 US $ or its equivalent in Turkish Lira can be exempted from export procedures.
Trade Facility Free from Customs Duty Procedure
The goods in free circulation can be sent to Turkey or to the EU countries from the free zones without any customs duty payment. Moreover, no customs duty is applied on the goods of third country origin at the entrance into the free zones and exit to the third countries.
The incentives and advantages provided in the free zones are available to all firms regardless of their origin.
Easy Access to EU Countries
Since free zones are part of the Turkey-EU Customs Territory, the goods in free circulation can be sent to the EU Countries by an A.TR certificate. Customs duties for the goods of third country origin are also not paid at the entry into the free zones. However, the goods of third country origin that are not in free circulation can be sent to the EU countries by an A.TR certificate, only after the customs duties are paid over the rates determined in the Common Customs Tariff.
Managing Trade Activities According to Market Demands and Conditions
Inflation Accounting Opportunity
Access to Domestic and Foreign Markets
In contrast to most of the free zones in the world, sales to the domestic market with the exception of consumer and risky products are allowed.
Reduced Bureaucratic Procedures and Dynamic Management
During application and operation process bureaucracy is minimized. Professional private sector companies manage free zones.
Competitive Infrastructure Standards
Supply Chain Management
Turkish Free Zones, particularly for the companies, which manufacture for export, offer supply chain management opportunities in providing intermediate and raw materials.