Exemption from Income Tax and Corporation Tax

According to Article 3 (Temporary) of The Code for Free Trade Zones, Number 3218: “up to the end of taxation period (year), in which European Union Member State Status is obtained;

a) All companies that are continuing their production activities in free zones, are exempted from Income Tax and Corporation Tax incurred from incomes from goods produced within the free zones. This exemption is not valid for witholding tax and will be made according to the 15th and 30th articles of the Corporation Tax Law, Number 5520, and (b) paragraph of the (6)th clause of first section of 94th Article of Income Tax Law, Number 193”.

Exemption from Personnel Income Tax

According to Article 3 (Temporary) of The Code for Free Trade Zones, Number 3218: “up to the end of taxation period (year), in which European Union Member State Status is obtained;

b) For those companies exporting on min. 85% of FOB amount of their products produced within free zones, are exempted from income tax, which is calculated upon salaries of their employees. This exemption amount may be reduced to 50% and increased to its legal level by the Council of Ministers. Taxes in default and not paid by the due date by the taxpayers whose annual sales amount is under the mentioned level, might be paid without any penalty but with default interest.”

Exemption from Stamp Duty and Other Duties

According to Article 3 (Temporary) of The Code for Free Trade Zones, Number 3218: “up to the end of taxation period (year), in which European Union Member State Status is obtained;

c) Transactions completed within trade zones and documents issued are exempted from stamp duty and other duties.”

Exemption from Customs Duties

According to Article 152 of Customs Law, Number 4458:- Free zones shall be parts of the Customs Territory of Turkey however in which:
 
(a) goods not in free circulation are considered, for the purpose of import duties and commercial policy and import duties and currency regulations, as not being on the Customs Territory of Turkey , provided they are not released for free circulation or placed under any customs procedure or used
or consumed under conditions other than those provided for in customs legislation;

 (b) goods in free circulation availed of the opportunities related to the export of the goods, by virtue of being placed in a free zone.

Exemption from VAT

According to Article 11 of the Value Added Tax Law, Number 3065: “1. Below mentioned services and goods are exempted from VAT:

a) Export deliveries and services completed in this manner, services provided to clients abroad, subcontracting services provided to customers in free zones, and roaming services provided with in the frame of mutual international roaming agreements in Turkey for clients abroad,”  

According to Article 17 of the Value Added Tax Law, Number 3065: “4. Other Exemptions:  i) Services provided within free zones,”