The evaluation of financial incentives which are allowed to free zones in Turkey

Change in competition conditions with the effects of globalization has been revealed the necessity of providing some incentives from governments for investments in order to enable them in national markets and free zones. From this point of view providing financial incentives such as corporation tax and income tax exemptions, documentary taxes and duties indemnity, vat exemption, free profit transfer allowance and customs tariff exemption in Turkey makes free zones as a center of attraction for investors. On the other hand investment incentive programs applied for the promotion of national investments have similar aspects as incentives provided for investors in free zones. Besides it is seen that financial incentives for free zones in Turkey have common features with financial incentives for free zones in selected countries in the world. In this thesis first information about types of free zones and financial incentives and their effects on national economy are given. Then financial incentives for free zones and investment incentives provided by government in Turkey are evaluated. Finally financial incentives for free zones in Turkey are compared with other free zones in selected countries in the world according to advantages and financial incentives.