Advantages of Free Zones


In this regard, the advantages of free zones are as follows:

1) 100 percent corporate tax exemption
The companies manufacturing at the free zone are exempted from the Corporate Tax that they must pay at the end of the financial year in Turkey.

2) 100 percent income tax exemption
No income tax is collected from the incomes and revenues obtained by real persons and legal entities as a result of their manufacturing activities in free zones.

3) Withholding payment exemption
The users exporting 85 percent of their production are provided with 25-40 percent cheap labor, as they pay no income tax for their personnel.

4) VAT exemption
Any goods and service sales from Turkey to the free zone is exempted from value-added tax.

5) Free profit transfer
Profits and revenues obtained in the free zone can be freely transferred to any country, including Turkey, without being taxed, in accordance with foreign exchange legislation.

6) Customs duty exemption
Any goods entered into free zones are exempted from customs duty.

7) KKDF (resource utilization support fund) exemption
The 3 percent Resource Utilization Support Fund applied to imports with acceptance credit is not applicable in free zones.

8) Cheap energy use
As electricity and fuel are exempt from VAT in Free Zones, cheap energy use is used.