Turkish Free Zones :: essays research papers

TURKISH drop by the wayside ZONES big Zones be defined as special sites within the inelegant but deemed to be outside of the customs border and they argon the regions where the reasoned regulations related to foreign trade and other financial and economic beas are not applicable, are partly applicable or new regulations are tested in. needy Zones are also the regions where more convenient transmission line climate is offered in order to increase trade volume and merchandise for some industrial and commercial activities as compared to the other parts of country.With the clinical of increasing export-oriented investment and production in Turkey, accelerating the entry of foreign pileus and technology, procuring the inputs of the economy in an economic and orderly fashion and increasing the function of external finance and trade possibilities, Free Zones Law numbered 3218 was issued in 1985.Since then,- Mersin (1987)- genus Adalia (1987)- Aegean (1990)- stanbul Atatrk Airpor t (1990)- Trabzon (1992)- stanbul-Leather (1995)- Eastern Anatolia (1995)- Mardin (1995)- ISE stanbul International Stock Exchange (1997)- zmir Menemen-Leather (1998)- Rize (1998)- Samsun (1998)- stanbul Thrace (ATALCA)(1998)- Kayseri (1998)Free Zones became operational. In general all kind of activities move be performed in Turkish Free Zones such as manufacturing, storing, packing, general trading, banking and insurance. Investors are step down to construct their own premises, while zones have also available use spaces, workshops, or warehouses on rental basis with attractive terms. All domain of a function of activities outspoken to Turkish private sector are also open to joint-venture of foreign companies. INCENTIVES OFFERED IN TURKISH FREE ZONESTurkish Free Zones are tax free zones. Income generated through activities in the Zones are exempted from all kinds of taxes including income, embodied and value-added tax. The validity period of an operation licence is maximum 10 days for tenant users, and 20 years for users who wish to make their own offices in the zone If the operating licence is for production, these terms are 15 and 30 years for tenant users and investors, respectively. The requested operation licence period can be prolonged to 99 years according to the type of investment. Free Zones earnings and revenues can be transferred to any country, including Turkey, freely without any preliminary permission and are not subject to any kind of taxes, duties and fees. on that point is no limitation on the proportion of foreign capital fight in investment within the Free Zones. In contrary to near Free Zones of the world, sales into the domestic market are allowed in Turkish Free Zones.