Decree No. 9903 · TYKH — Programme A
Technology intensity becomes a strategic advantage.
Manufacturing investments in the high-technology and medium-high-technology category access the most comprehensive support under the Turkey's Century Development Thrust of Decree No. 9903. Machinery support is the most notable innovation of this programme compared to the old system.
Legal Basis
9903
Presidential Decree · Turkey's Century Development Thrust · Programme A
Ministry of Industry and Technology of Türkiye
General Directorate of Incentive Practices and Foreign Investment
Call-Based Application
Technology Initiative applications depend on call schedules announced by the Ministry. Evaluation is conducted by the Committee; a preliminary analysis is mandatory before applying.
Scope and Requirements
Technology Class Requirement
The investment must be classified as high-technology or medium-high-technology according to the OECD classification. Classification is determined through the HS code of the product to be manufactured.
R&D Intensity & Digital Transformation
The programme supports technology transfer and digital transformation. Investments with high R&D intensity hold a priority position in the evaluation.
Machinery Support Threshold
Machinery support is provided as cash of up to 25% of the value of eligible machinery and equipment within the investment scope; the maximum support amount is capped at TRY 301 million.
Committee Evaluation
Applications are evaluated by the Committee within the Ministry in terms of economic contribution, employment impact and technology level. The standard approval process is not applicable.
Support Elements
Including machinery support, the full package.
Investments under the Technology Initiative access VAT exemption, customs duty waiver, corporate tax reduction and SGK support — plus the cash machinery support available exclusively under this programme.
VAT Exemption
Domestic machinery and equipment purchases are exempt from VAT; VAT paid on imported machinery is refunded.
Customs Duty Waiver
Machinery and equipment imported under the incentive certificate are exempt from customs duty.
Corporate Tax Reduction
Programme-specific investment contribution rate applies. The corporate tax reduction is calculated based on the incentive certificate's investment location and amount.
Employer's SGK Premium Support
The employer's SGK premium for personnel employed during the operating period is covered by the Treasury for a period determined by programme and region.
Innovation of Decree No. 9903
Machinery Support
Cash support of up to 25% on eligible machinery and equipment value. This mechanism — absent in the former 2012/3305 system — reduces the liquidity burden in the early stage of the investment.
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 preliminary analysis to Committee approval.
Since a Technology Initiative application includes call-period-specific criteria, the file preparation process differs from standard incentive applications. Each stage depends on the output of the previous one.
Preliminary Analysis & Technology Class Determination
The HS code of the product to be manufactured is determined; it is verified whether it falls into the high-technology or medium-high-technology category under the OECD technology classification. R&D intensity and digital transformation components are catalogued.
Call Schedule Monitoring & Preparation
The call schedule, criteria updates and evaluation priorities announced by the Ministry are tracked. Having application preparation completed when the call opens directly affects the evaluation process.
Application File Preparation
An application file covering feasibility report, machinery and equipment list and technical documents is prepared. R&D intensity and technology transfer components are separately documented.
Submission to Ministry
The completed file is submitted to the Ministry through the call-specific application channel. In the event of missing documents or errors, the completion deadline is limited.
Committee Evaluation & Incentive Certificate
The Committee evaluates the project in terms of technology level, employment impact and economic contribution. After a favourable decision, the incentive certificate is issued and the machinery support process begins.
Frequently Asked Questions
About the Technology Initiative.
How is the technology class determined?
The HS code of the product to be manufactured is determined and the OECD technology intensity classification corresponding to this code is examined. High-technology sectors include aerospace, pharmaceuticals, computers and electronics. The medium-high-technology group includes machinery, chemicals and motor vehicles. Documenting this determination before applying is one of the fundamental requirements of the file.
How is machinery support paid?
Machinery support is paid in cash after the purchase of eligible machinery and equipment covered by the incentive certificate is documented. The maximum support amount is TRY 301 million; the portion exceeding this limit is not covered. The payment schedule and application procedure depend on the conditions set out in the incentive certificate.
When is the call schedule announced?
Call dates are announced by the Ministry through official announcements; there is no pre-set fixed schedule. For this reason, it is critical that the preparation process is completed before the call is opened. We recommend seeking advisory support to track call periods and have application preparation in place at the moment of announcement.
Can support be received before the investment is completed?
VAT exemption and customs duty waiver come into effect at the machinery and equipment purchase stage; completion of the investment is not awaited. Machinery support payment may begin once the purchase of the relevant machinery is documented. The corporate tax reduction is applied on profits earned after the investment commences operations.
Can companies with foreign capital apply?
Yes. Foreign-capital companies registered in Türkiye can apply to the Technology Initiative programme on the same terms as domestic companies. It is sufficient for the investment to be made in Türkiye and to meet the general conditions of the incentive legislation.
preliminary analysis
Does your investment qualify for the Technology Initiative?
We assess your project in the initial meeting for OECD technology class determination, machinery support calculation and call preparation.
Request a MeetingNext Step
Let's prepare the right file
for the Technology Initiative together.
We are at your side at every stage of technology class determination, machinery support calculation, call monitoring and Committee application. We assess your project's eligibility in the initial meeting.