SECTION FIVE

Customs Duty and Tax Exemptions and Incentives

Customs Duty Exemptions

Article 28- The Free Zones lie outside the customs boundaries. Legislation regarding customs liabilities does not apply in the Free Zones. Although the Customs Law and related legislation is enforced at the entrance and exit points, no customs duties, charges, fees or similar financial obligations, with the exception of the Free Zones Establishment and Development Fund levy, is applicable to goods entering the Zone or being exported to other countries from the Zone.

Export and import transactions from the Zone to Turkey to be made under the Legislation on the Promotion of Exports are subject to the provisions of the current Directive on the Promotion of Exports.

Tax Exemptions and Other Incentives

Article 29- Provisions of legislation concerning taxes, duties, charges and foreign exchange obligations are not applicable in the Free Zones.

The earning and revenues of real or legal persons resident in Turkey who are wholly or partially liable for taxation which arise from their activities in the Zone, shall be exempt from income and corporation tax on the condition that they are documented in accordance with the foreign exchange legislation and that they are transferred to other parts of Turkey.

The Operator or the Z.F.O. and the users may benefit from the incentives determined by the Council of Ministers, during the investment and production phases.

No real or legal person without an “ Operation Licence” is entitled to the incentives applicable in the Free Zones.