Decree No. 9903 · TYKH — Programme B
Regional development accelerates with the right investment.
Investments that increase employment and production in underdeveloped regions benefit from region-specific corporate tax reduction, SGK support and interest rate support under the Local Development component of Decree No. 9903. The region classification directly determines the support rates and durations.
Legal Basis
9903
Presidential Decree · Turkey's Century Development Thrust · Programme B
Ministry of Industry and Technology of Türkiye
General Directorate of Incentive Practices and Foreign Investment
Call-Based Application
Local Development applications are accepted according to call schedules announced by the Ministry. Evaluation is conducted by the Committee; the region classification determines the support package.
Scope and Requirements
Region Eligibility
The fundamental requirement is that the investment be made in underdeveloped regions. The region classification is determined according to the province and district-based tables in the annexes of Decree No. 9903.
Employment & Production Growth
The investment is expected to create net employment and increase production capacity in the region. Employment commitment stands out as an important criterion in the evaluation.
Region-Based Support Rates
Corporate tax reduction rates and SGK support durations vary by region. Less developed regions receive higher support rates and longer support durations.
Committee Evaluation
Applications are evaluated by the Committee in terms of contribution to regional development, employment impact and investment scale.
Support Elements
Region-specific interest and tax support.
Beyond VAT and customs support, Local Development offers corporate tax reduction, SGK support and interest rate support determined by the region classification together.
VAT Exemption
Domestic and imported machinery and equipment purchases are exempt from VAT.
Customs Duty Waiver
Machinery and equipment imported under the incentive certificate are exempt from customs duty.
Corporate Tax Reduction
Investment contribution rate and corporate tax reduction rate determined by region classification are applied. Rates are higher in less developed regions.
Employer's SGK Premium Support
The employer's SGK premium for personnel employed is covered by the Treasury for a period determined by the region classification.
Regional Development Tool
Interest / Profit Share Support
A portion of interest or profit share expenses on investment loans covered by the incentive certificate is covered by the Treasury. The support rate and duration vary by region.
Investment Site Allocation
Public immovables may be allocated to the investor free of charge or at a nominal fee along with a production commitment.
Our Process
From region analysis to incentive certificate.
In a Local Development application, the correct region determination and investment location decision directly affect the support package to be received. Completing this analysis before the call period is critical.
Region Analysis & Location Decision
The region classification of the province and district where the investment will be made is determined according to the annexes of Decree No. 9903. Support packages offered by different locations are compared; the most economically advantageous location for the investment is reported.
Call Schedule Monitoring
Call periods announced by the Ministry are tracked. Local Development calls may carry region- or sector-specific priorities; these variables are monitored and reflected in application preparation.
Application File Preparation
An application file covering feasibility report, region eligibility document, employment commitment and machinery and equipment list is prepared. If interest rate support is to be requested, the loan structure is also included in the file.
Submission to Ministry
The completed file is submitted to the Ministry through the call-specific application channel. The region classification and support package are explicitly declared in the application.
Committee Evaluation & Incentive Certificate
The Committee evaluates the investment's contribution to regional development, employment impact and investment scale. After a favourable decision, the incentive certificate is issued; the region-based elements of the support package come into effect.
Frequently Asked Questions
About Local Development.
Which regions are covered?
The regions covered by Local Development are listed in the annexes of Decree No. 9903 on a province and district basis. Region classification is made based on the socioeconomic development index. Each region has its own support rate and duration; less developed regions receive higher support. Determining which classification the investment location falls into is mandatory before applying.
How are corporate tax reduction rates determined?
The investment contribution rate and corporate tax reduction rate are determined according to the region classification of the investment location. The contribution rate and reduction rate are high in less developed regions and lower in relatively more developed regions. These rates are fixed in the incentive certificate and are applied on annual earnings after the investment is completed.
How long is SGK support valid?
The SGK employer premium support duration varies by region classification. The support duration is longer in less developed regions. The support is applied to employment created during the operating phase after the investment completion endorsement. Falling below the committed employment level may weaken the conditions for benefiting from the support.
Which loans does interest rate support cover?
Interest rate support covers TRY loans used for the investment covered by the incentive certificate. The covered loan amount and the number of basis points for interest support are determined according to the region classification and call period. For the support to apply, the loan must have been used after the incentive certificate is issued.
What happens if the investor relocates outside the region after the investment is completed?
The investment covered by the incentive certificate must be completed in the committed location and operated for a certain period. Relocating operations outside the region may be considered a violation of the conditions for benefiting from the incentive and may result in partial or full repayment of the supports. When commitments are fulfilled, the support becomes permanent.
region analysis
Which support package does your location offer?
We analyse the classification of your investment region, corporate tax reduction rates and interest rate support calculation in the initial meeting.
Request a MeetingNext Step
Let's determine the right location
for Local Development together.
We are at your side at every stage of region classification, interest rate support calculation, SGK support duration and call preparation. We analyse your investment location in the initial meeting.