WHAT IS A FREE TRADE ZONE?
According to the legislation, free trade zones are regulated within the scope of the Free Trade Zones Law, the Free Trade Zones Implementation Regulation, and the Circulars of the General Directorate of Free Trade Zones. 6 of the Law on Free Trade Zones No. 3218.article 1.according to the definition made in the paragraph of the free trade zone; “Although they are parts of the Customs Zone of Turkey; location and boundaries designated by the president of the Republic, non-free circulation of goods without being subject to any customs regime of free circulation and, without being consumed or will not be used except where provided for in the customs legislation where it was provided, import duties and trade policy measures in the implementation of regulations and the foreign exchange and goods outside the customs territory of Turkey is considered to be due to the introduction of the export of goods normally depends on the free trade zone are taking advantage from the opportunities. it is described as “.
Free trade zones are special economic zones that are not subject to or partially subject to legal and administrative regulations related to commercial, financial and economic areas in order to encourage investment and production. Free Trade Zones are regions with special conditions and privileges that are excluded from the customs zone in a commercial sense, although they are within the borders of the country of Turkey. According to Free Trade Zone Law: “Trade between the free trade zone and other places in Turkey is subject to the foreign trade regime.”
WHO CAN OPERATE IN FREE ZONES?
In free trade zones, local or foreign real persons or foreign legal entities can operate by providing the necessary procedures and obtaining an operating license. There are no restrictions on domestic or foreign capital for legal entities that will operate in free trade zones. Investors can establish a company only on condition of operating in the free trade zone and by showing the company address in the free trade zone. Companies wishing to establish a company in the free trade zone are required to obtain a free trade zone Operating License.
WHAT ARE THE ADVANTAGES OF ESTABLISHING A COMPANY IN A FREE TRADE ZONE?
In terms of the application of the provisions of origin, they are considered to be the Customs Territory of Turkey. Therefore, goods shipped from Turkey to the free trade zone and goods shipped from the free trade zone to Turkey are subject to the foreign trade regime. However, the foreign trade regime is not applied between the free trade zones and other countries and free trade zones. Goods sold from Turkey to the free trade zone are subject to the export regime, and goods sold from the free trade zone to Turkey are subject to the import regime. Users in the gains they have achieved in the free trade zone manufacturing activity in this area is not under the obligation to pay tax or corporate income tax, but free trade zone users without permission of the competent authorities of the profit earned will be able to easily transfer without VAT will be able to receive goods and services from Turkey.
OPERATING LICENSE /REPORT IN THE FREE TRADE ZONE
In order to establish a free trade zone company and operate in the free trade zone, it is necessary to obtain an operating license first. This license must be obtained from the General Directorate of Free Trade Zones, Foreign Investment and Services of the Ministry of Trade. In order to apply for an operating license, the application form must first be filled out and the application fee of USD 5000 must be deposited to the Special Account of Free Trade Zones with the Central Bank of the Republic of Turkey.
If The Application Is evaluated positively.
If it is deemed appropriate to grant an activity permit, the applicant must submit a sample of the contract to be made for the supply of the workplace in which he will operate within Jul 30 days and the necessary documents to the General Directorate of Free Trade Zones. Even if it is not transmitted, the right to obtain a license is lost and the application fee is recorded as income at the competent authority.
If The Application is evaluated negatively.
As a result of the evaluation of the application by the General Directorate of the Free Trade Zone, the application fee is refunded to the applicant who receives negative feedback.
FOR HOW MANY YEARS CAN AN OPERATING LICENSE BE OBTAINED?
The operating license is granted for a period of 20 years for those who will engage in production activities from tenant companies in the free trade zone, and for a period of 15 years for other areas of activity. For investor companies, an operating license is issued for a period of 45 years for those who will engage in production activities, and 30 years for those who will engage in other activities.