Local Development Initiative Incentive Program
OBJECTIVES
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Reducing interregional development disparities
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Increasing the competitiveness of regions
GOALS
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Raising the socio-economic development level of provinces
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Utilizing geographical potential and idle resources
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Meeting local needs
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Developing sectors with a high probability of success that are not currently produced in the region
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Supporting forward-backward linkages of existing sectors and creating clusters
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Increasing local employment
SUPPORTS
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Tax Reduction: 50% Investment Contribution Rate
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Support Amount: 15% of the investment amount and up to 240 million TRY in cash support, or 20% of the investment amount and up to 240 million TRY in interest/profit share support
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VAT Exemption
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Allocation of Investment Land
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Customs Duty Exemption
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Employer’s Share of Social Security Premium Support (12 years in Region 6, 8 years in other regions)
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Employee’s Share of Social Security Premium Support (in provinces of Region 6)
IMPLEMENTATION, MONITORING, AND EVALUATION
Will be carried out under the coordination of the General Directorate of Development Agencies through 26 Development Agencies.
HOW WERE THE INVESTMENT AREAS DETERMINED?
Investment areas were determined based on:
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Meeting local needs
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Utilizing idle resources
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Developing forward-backward linked sectors
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Creating clustering opportunities
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Increasing the level of technology production
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Increasing employment
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Strengthening socio-economic development
This program, which will make the best use of the potential of the regions, will encourage production, create new employment opportunities, and spread the development chain starting from the local level across Turkey.
