Financial Advantages

In Turkey free zones begun to be founded based on 3128 free zones act which came into force in 1985.

Major purpose for founding the free zones is, through attracting foreign capital investments, increasing exports, ensuring foreign currency input, creating new employment areas, ensuring that new technologies enter into our country and thus creating added value for the economy. Due to such incentives, companies are held exempted from corporations tax and employees are exempted from income tax.

On 06.02.2004, some amendments were made to the Law no. 5084 and Free Zones Act and new principles were determined for tax exemption to those who are doing their activities within free zones. Accordingly;
Real or legal persons who received their license for activities within free zones before 06.02.2004; shall continue to enjoy income or corporations tax exemption as limited with their activity license period,

They shall not pay income tax over the wages of their employees until 31.12.2008,

They shall be exempted from all kinds of taxes, duties and mortars that arise from their transactions related to the activities within the zone until 31.12.2008.

Regarding the real and legal persons who are free zone users after 06.02.2004,

-incomes from sales of products of those who do their activities with manufacturing license shall be exempted from income or corporations tax until the taxing period of the year that European Union membership is realized. However, they shall pay the income taxes of their employees. Other companies that do not do manufacturing shall work as subject to income and corporations taxes.
Free zone user companies can transfer the revenues and incomes acquired from their activities to abroad or Turkey without having to get any permission.
For goods that are brought to the zone from abroad, no customs tax applies.
Goods that are brought from abroad can stay within the zone without time limitations.

All kinds of paperwork during application and activity periods have been minimized.

As sales made to Kocaeli Free Zone from within the country are regarded as exports, zone users can purchase goods without VAT and at export prices.