INVEST KÜTAHYA
Law No. 5350 envisages State incentives for creation of new jobs in the provinces;
- Where income per capita was less than $1500 in year 2001 or
- Where the year-2003 Socio-economic Development Index value announced by the State Planning Organisation is negative. (Kütahya and other cities like)
A- Incentives
The law envisages that eligible enterprises defined below shall be granted the following incentives:
- ‘Personal income tax’ exemption
- ‘Social insurance contribution (employer’s share)’ exemption
- Free Land support
- Energy subsidies
These incentive schemes will have been abandoned as of January 1, 2009.
B- Income Tax & Social Contribution exemptions
In the covered provinces, income and corporate tax payers who
a) started their business after April 1, 2005 and employ at least 10 employees or
b) started their business before April 1, 2005 and, afterwards, increased/increase the number of employees by at least 20% over those employed before 2005 in a way that the total number of employees exceeds 10
are granted ‘income tax’ and ‘social insurance contribution (employer’s share)’ exemptions as shown in the following table.
In case of 1(a), all new employees’ wages are subject to ‘personal income tax’ and ‘social insurance contribution (employer’s share)’ exemptions.
On the other hand, for those which fall into category 1(b), both;
- the additional (new) employees and
- a number of other employees who were employed before 2005, not more than twice the number of new (additional) employees
are subject to ‘personal income tax’ and ‘social insurance contribution (employer’s share)’ exemptions.
|
Operation location (in the covered provinces) |
Amount of Exemption |
Income Tax |
Industrial Zones (IZ) or Organised Industrial Zones (OIZ) |
100% of the income tax to be calculated out of the minimum wage |
Places other than IZ and OIZ |
80% of the income tax to be calculated out of the minimum wage |
the employer’s share of social Insurance contribution (payable to SSK’the private sector wage earners & public sector workers’ scheme) |
IZ or OIZ |
100% of the social insurance contribution (the employer’s share) to be calculated out of the minimum wage |
Places other than IZ and OIZ |
80% of the social insurance contribution (the employer’s share) to be calculated out of the minimum wage |
C- Free-Land-Support
Lands belonging to the Treasury or local governments can be allocated to the use of investors who will create 10 or more jobs (for at least 5 years) in the provinces described above or those in the Priority Development Regions provided that no space is left in the Organised Industrial Zones or Industrial Zones in the relevant province.
D- Energy Subsidies
Beneficiaries
The following categories of enterprises with certain production/closed-space capacities are granted energy subsidies:
a) Stock breeding firms, freezing-warehousing companies, glasshouses/sera operators or certified seed producers which
- were set-up after April 1, 2005 and that employ at least 10 employees or
- started operating before April 2005 and that increased the number of employees by at least 20% after April 1, 2005 over those who were employed before 2005 provided that the total number of employees is 10 or more
b) Manufacturing and mining companies, tourism accommodation facilities, educational enterprises, or health services providers which
- were set-up after April 1, 2005 and that employ at least 10 employees or
- started operating before April 2005 and that increased the number of employees by at least 20% over those who were employed before 2005 provided that the total number of employees is 30 or more
Amount of energy subsidies
If the covered enterprises employ the minimum number of employees mentioned above, the amount of energy subsidy is 20% of the total energy bill charged by the supplier. If they employ more employees than the minima, then the subsidisation rate is increased by 0.50 percentage point for each additional employee.
However, there is a ceiling for the subsidisation rate. The ceiling is as follows:
Enterprises |
Ceiling |
Those in ‘Organised Industrial Zones or Industrial Zones’ |
40% |
Those in other places |
50% |
COMPANY ESTABLISMENT IN TURKEY
INDUSTRIAL ZONES
1ST ORGANIZED INDUSTRIAL ZONE
Blue color:Factories
Red color :Continuing Factory investments
Green Color:Empty parcels for investors
2ND ORGANIZED INDUSTRIAL ZONE
Yellow color:Pre-appropriated parcels to investors
Turquoise color: Empty parcels for investors
Gren color:Social facilities
Orange color:Cleasing facilities
Green color:Trade zones
DISTANCES
Our province is located close to the big harbors and airports
Distance Kütahya to Eskişehir airport 90 km by highway
Distance Kütahya to Gemlik port:200 km by highway
Distance Kütahya to Bandırma port 354 km by railway
Distance Kütahya to Haydarpaşa port 391 km by railway
Distance Kütahya to Derince port 307 km by railway
Distance Kütahya to Alsancak port 494 km by railway
Distance Kütahya to İstanbul airport 360 km by highway
Distance Kütahya to Ankara airport 310 km by highway
top of page
|
