Financial structures problem of free zones. and Eagean free zone model

Our world has become a common market as a result of globalization. The global capital makes its investments to the most profitable countries. What mean of a foreign capital coming to a country is investment, employment, economic improvement and growing stronger. The country governments are in a competition to attract foreign capital sometimes with their harmful tax. Competitions or incentive laws and incentive zones in legal basis. Today, about 15% of the worlds commerce are realized at free zones. Free zones are supported by the governments as they provide large employment, new technology entry and contribution to country economy. Furthermore, these zones are reason of choice by foreign investors with their other advantages of tax incentives and easiness in customs processes.Aegean Free Zone (EFZ) is one of the 21 free trade zones in Turkey. It is built on 2.2 million m2 in Izmir-Gaziemir. EFZ has 264 exporter companies where 73 of them is foreign. Depending on the Tax Law Number 3218, special taxing model is applied to these companies. Within the framework of Aegean Free Zone Model; the tax advantages provided for employment, investment and export have been an attractive economic factor to choose Free Zones for especially the foreign and native investors.In this study; first the historical development of free zones will be told and the applications in Turkey and on the world are described. Further, tax applications free zones in Turkey are explicated, and ESBAS model is founded. Following, The critical control points of ESBAS model equivalent to tax paradise are formed and the tax analysis is introduced. Via moving from this point the contributions of free zones to the economy is emphasized.