The status in tax laws and tax advantages of tax payers operating in free zones

Although free zones are located within the geographical and political borders of the countries, they are regions that are considered outside of the customs territory and where some tax and commercial incentives come into play. A number of tax incentives have been provided to free zones in our country in order to obtain the expected benefit from free zones, in other words, to make invest-ments in free zones attractive, and therefore to increase employment, exports and fore-ign currency inflows. However, the changes made in both the free zones law and the special tax laws cause problems in practice for the companies operating in the free zo-ne. In this study, the practices regarding the legislative changes, the problems expe-rienced in practice and solutions for the problems were presented. It has been revealed how the tax incentives in the laws should be understood and applied based on the opi-nions of the fiscal administration, judicial decisions and literature review. Keywords: Free Zone, Tax Advantages, Exception Amount, Export