Decree No. 2012/3305 was repealed by Official Gazette dated 30 May 2025. Services for existing certificate holders continue uninterrupted.
New System · Decree No. 9903MoIT · General Investment Incentive
The first incentive step
for investments of any scale.
The General Investment Incentive, regulated under Article 7 of Decree No. 2012/3305, is the most accessible support package available to all investments meeting the minimum fixed investment threshold. It provides VAT exemption and customs duty exemption with no regional or sectoral restrictions.
Legal Basis
Article 7
Decree No. 2012/3305 — General Incentive Applications
Minimum Fixed Investment Thresholds
Scope of Services and Eligibility Conditions
The General Investment Incentive is the broadest regulation under Decree No. 2012/3305. It applies across a wide spectrum including manufacturing, energy, agriculture, services and tourism, with the exception of activities excluded from the scope of incentive certificates. It does not provide the differentiated tax reduction, social security support or interest support offered by regional incentives, but delivers two concrete advantages felt from the very start of the investment.
VAT exemption ensures that no VAT is paid on the purchase or importation of machinery and equipment covered by the incentive certificate. Customs duty exemption eliminates customs duty and the housing development fund obligation on imported machinery and equipment. Both supports directly improve cash flow as investment expenditures are made.
The incentive certificate application must be submitted before commencing the investment. Expenditures made prior to the certificate date are excluded from scope. Pre-analysis — which determines which expenditures fall within scope and whether the minimum threshold is met — is therefore the most critical step in the process.
Support Elements
Two supports,
a concrete cash advantage.
The General Investment Incentive consists of two support elements. Both directly reduce investment costs and are felt the moment an expenditure is made.
VAT Exemption
No VAT is paid on the domestic purchase or importation of machinery and equipment covered by the incentive certificate. This exemption reduces the financing burden of the investment from the outset; the tax advantage converted to cash is directly linked to equity utilisation or credit costs.
Machinery, equipment and construction-assembly works within the incentive scope
Full exemption at the standard VAT rate (20%)
Automatically applied on each purchase invoice once the incentive certificate is obtained
Customs Duty Exemption
Customs duty and housing development fund payments are eliminated for machinery and equipment imported under the incentive certificate. For advanced-technology equipment that cannot be produced domestically, this exemption significantly reduces import costs.
Imported machinery and equipment; list approved by Ministry of Treasury and Finance
Customs duty + housing development fund; 3%–20% saving depending on rates
Only equipment listed on the machinery schedule of the incentive certificate qualifies
The General Investment Incentive does not include tax reduction, employer social security premium support, interest or profit-share support, or investment site allocation. If these supports are needed, the investment's regional, sectoral and amount profile should be evaluated and Regional Incentive, Large-Scale Incentive or Strategic Incentive regulations should be reviewed.
Process Management
From application to
confirmed incentive rights.
While the General Investment Incentive is procedurally simpler than other regulations, post-certificate commitment tracking carries critical importance. The incentive right is not confirmed until the investment is complete.
Eligibility and Scope Analysis
The investment subject, amount and location are evaluated to determine whether it falls within regulatory scope. Which machinery and equipment can be included in the incentive, whether the minimum fixed investment threshold is met, and any potential restrictions are clarified at this stage. This analysis, conducted before the investment begins, prevents errors that cannot be corrected later.
Machinery Schedule and File Preparation
The machinery and equipment list to be included in the incentive scope is structured in accordance with regulations. HS codes are verified; domestic and imported equipment are classified separately. The investment plan, capacity data and supporting documents are prepared ready for Ministry submission.
Ministry Application and Certificate Acquisition
The application is submitted to the Ministry of Industry and Technology. Requests for additional information and documents are managed by Akbaş; the client does not conduct any official correspondence independently. The evaluation process for General Investment Incentives is notably shorter than for large-scale or strategic incentives.
Investment Implementation and Commitment Tracking
Once the incentive certificate is obtained, machinery purchases are made in accordance with the certificate. Purchases outside the certificate scope do not generate incentive rights. If changes to the machinery list are needed and revision requests are not managed in time, rights may be lost.
Investment Completion Visa
When the investment is complete, machinery acceptance records and relevant accounting documents are compiled and submitted for Ministry review. The incentive right is not confirmed until the completion visa is obtained; if the visa period is exceeded, the certificate risks cancellation. Akbaş manages this final stage without exception.
Example Scenario
Incentive value
seen in numbers.
Rather than abstract regulatory clauses, a concrete scenario: how the two support elements work for a ₺12 million investment and what cash advantage they provide.
Scenario Parameters
Incentive Calculation
The customs rate varies by machinery type. A weighted average of 5% has been used in this example; the actual rate is determined on a per-HS-code basis. The VAT rate reflects the general rate applicable in 2024.
Frequently Asked Questions
Common questions about
the General Incentive.
Which investments qualify for the General Investment Incentive?
Any investment meeting the minimum fixed investment threshold is eligible for the general incentive, except for activities listed as excluded from the incentive certificate scope under Decree No. 2012/3305. A broad range of sectors including manufacturing, energy, agriculture, tourism and services falls within this scope. Mining, textile yarn spinning and certain food processing activities may be among excluded activity groups — this is clarified during pre-analysis.
How is the minimum investment threshold calculated?
The minimum fixed investment threshold is the sum of machinery and equipment, construction costs and, where applicable, land values included in the incentive scope. It differs by region: ₺3 million for provinces in Regions 1 and 2, ₺1.5 million for Regions 3 through 5, and ₺500,000 for Region 6. These thresholds are regularly updated in the legislation.
How does the VAT exemption work for domestic purchases?
Once the incentive certificate is obtained, a copy of the certificate is presented to the seller of machinery and equipment within the certificate scope. The seller issues the invoice without VAT; the buyer does not pay VAT on that purchase. No additional application is needed by the firm to execute the process; the incentive certificate is sufficient. Standard VAT continues to apply to purchases outside the certificate scope.
Can the machinery schedule be amended?
Yes, the machinery list can be changed by submitting a certificate revision request. However, any addition or removal requires Ministry approval; purchases made without that approval remain outside the incentive scope. Machinery changes arising during the investment process must therefore be managed proactively.
Can you provide a comparative analysis of General and Regional Incentives?
Yes. If the investment's region and sector qualifies for the regional incentive, both regulations should be analysed together. Since tax reduction, social security support and interest support may also be activated under the regional incentive, the total incentive value can be considerably higher. This is precisely the purpose of the pre-analysis: to compare all eligible regulations and determine the most advantageous structure.
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Is your investment eligible for this incentive?
The investment's sector, amount and location are evaluated to determine which incentive regulations apply and to calculate the expected support value.
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