TURKEY’S MODEL OF EXCELLENCE «AEGEAN FREE …What is a Free Zone 2 •A Free Zone is an area...

TURKEY’S MODEL OF EXCELLENCE

«AEGEAN FREE ZONE»

What is a Free Zone

2

• A Free Zone is an area inside a

country’s borders but

considered to be outside the

customs area.

• The purpose of the area is to

encourage exports by offering

special incentives for

commercial and industrial

activities.

Basic Objectives of the Free Zones in Turkey

3

Developing internationaltrade

Accelerating foreign direct investment

Technology access andemployment

Promoting export oriented investment and production

Directing enterprisestowards export

Free Zones in Turkey

4

Gaziantep

Adana YumurtalıkMersin

Antalya

Izmir

TrabzonKocaeli

Istanbul Ataturk Airport

Kayseri

İstanbul Ind.

Rize

Doğu Anadolu

Samsun

Tubitak - MAMBursa

İstanbul Trakya

Denizli

AEGEAN FREE ZONE

Types of Operating License

5

Manufacturing TradingAssembly-

Disassembly

MaintenanceOthers (Banking,

Consulting)

6

Free Zone Advantages | Tax Advantages

Witholding Tax Exemption

100% Corporate Tax Exemption for manufacturing companies

100% Income Tax Exemption on employee’s salaries for manufacturing companies which

export 85% or more of their products

No Customs Duties for goods, equipment and machinery brought into the Zone.

Opportunity to buy Turkish products at export prices without the Sales and Value Added Tax

Special Consumption Tax Exemption

Stamp Taxes, Tariffs and Duties Levied Exemption

Resource Utilization Support Fund (RUSF) Exemption

Free Zone Advantages | Tax Advantages According to Type of Operating License

7

Manufacturing

Corporate Tax%22

Income Tax*%15-35

Value Added Tax

Customs Duties

Special Consumption Tax

Stamp Taxes, Tariffs andDuties Levied

Resource Utilization Support Fund (RUSF)

Witholding Tax

Assembly-Disassembly, Maintenance

Corporate Tax **%22

Value Added Tax

Customs Duties




Witholding Tax

Trading

Value Added Tax

Customs Duties




Witholding Tax

* Minimum %85 export

** %100 export

Comparison of the Tax Rates with Other Countries

8

Source : Paying Taxes 2018 Report - Pwc

Countries Total Tax Rate# of Different

TaxesProfit Tax Labor Tax Other Tax

Turkey 41,1 11 1 18,2 1 19,9 9 3

USA (NY) 45,8 11 2 27,1 4 10 5 8,7

Hungary 46,5 11 2 9,9 2 34,3 7 2,3

Italy 48 14 2 19,5 1 43,4 11 1,9

Germany 48,9 9 2 23,2 1 21,4 6 4,3

Japan (Tokyo) 47,4 14 3 24,6 2 18,5 9 4,3

Morocco 49,8 6 1 25,1 1 23,3 4 1,4

Czech Republic 50 8 1 9,1 2 38,4 5 2,5

India (Delhi) 55,3 13 1 23,5 4 20,4 8 11,4

China (Shanghai) 67,1 9 3 11,1 1 47,6 5 8,4

France 62,2 9 1 0,7 2 51,1 6 10,4

9

Free Zone Advantages | Other Advantages

UnlimitedTime

Stocking

Minimum Port Costs

Guaranteeof transfers

Ready toUse

Buildings

One Stop Shop

LogisticalAdvantages

Minimum Bureaucracy

About Aegean Free Zone

176

Investor

21.158

Employment600.000 m2

Expansion

Area

Founded

in1990

Built

Operate

Transfer

System

First in

Private

Sector

2.200.000 m2

23.000

Goal for

Employment

About ESBAŞ

11

• Developed and Operated by ESBAS

(US Company)

• 530 Employees On-Site

• Shareholders

• EAC International (USA)

• Aegean Region Chamber of Industry

• İzmir Chamber of Commerce

• İzmir Metropolitan Municipality

• Ministry of Finance

• Certificates

• ISO 9001 Quality Management System

Certificate

• ISO 14001 Environmental Management

System Certificate

• OHSAS 18001 Occupational Health and Safety

Management System Certificate

• ISO 22000 Food Safety Management System

Certificate

• EFQM Management Systems

Main Services

12

Leasing Services: Land, Open Area, General-Modular Warehouses

Electricity, Natural Gas, Water, Telecommunication

Food Service, Catering Service

Loading/Unloading & Handling Services

Project Examination and Construction Control Service, Construction/Repair Service

Industrial Waste Collection Service, Environmental Clean-up and Garbage Collection Service

Optional Services

13

Occupational Health and Safety Department Service

Child Care Center Service

Landscape Service

Foreign Trade Service

Personnel Transportation Service

Cleaning Service

Conference and Training Hall Rental Service

Aegean Free Zone Trade Volume [1000$]

14

YEA

R

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

2014 2015 2016 2017 2018/5 TOTAL

TOTA

L 0

34

.58

6

56

.32

5

19

3.5

73

48

7.1

10

70

4.0

59

91

2.8

86

1.4

29

.659

1.4

46

.381

1.1

88

.186

1.6

62

.598

1.2

91

.910

1.8

28

.870

2.6

42

.599

3.2

41

.026

3.7

66

.021

4.0

01

.498

4.0

92

.781

3.7

63

.964

2.6

58

.772

3.9

85

.295

5.0

00

.095

4.7

10

.012

4.6

80

.244

4.293.418 3.878.766 4.075.581 4.327.519 1.684.972 72.038.706

0 34

.58

6

56

.32

5

19

3.5

73

48

7.1

10

70

4.0

59

91

2.8

86

1.4

29

.65

9

1.4

46

.38

1

1.1

88

.18

6

1.6

62

.59

8

1.2

91

.91

0

1.8

28

.87

0 2

.64

2.5

99

3.2

41

.02

6

3.7

66

.02

1

4.0

01

.49

8

4.0

92

.78

1

3.7

63

.96

4

2.6

58

.77

2

3.9

85

.29

5

5.0

00

.09

5

4.7

10

.01

2

4.6

80

.24

4

4.2

93

.41

8

3.8

78

.76

6

4.0

75

.58

1

4.3

27

.51

9

1.6

84

.97

2

0

1000000

2000000

3000000

4000000

5000000

6000000

Annual Trade Volume of the Free Zones in Turkey [1000$]

15Source: Ministery of Economy

2.502.919

5.000.095 4.710.012 4.680.350 4.293.394 3.878.713 4.075.541 4.327.519

4.270.831

3.603.223 3.220.084 2.901.539

2.823.959 2.959.513 2.498.723 2.564.087

2.227.309

2.693.049 3.832.246 3.367.449

3.328.734 2.939.453 2.768.490

3.096.676

1.480.979

1.533.749 1.443.596 2.439.926

2.447.756 2.338.769

1.972.379 2.030.141

2.718.109

2.241.525 2.103.566 1.907.396 1.934.418

1.746.707 1.835.433

1.766.082

1.288.563

2.059.462 2.364.905 1.723.960

1.633.495

1.320.816 1.121.673

1.264.041 1.352.280

1.571.579 1.532.317

1.797.351 1.518.423

1.271.013

1.096.455 1.135.613

2.731.215

3.196.087 3.334.483 3.771.593

3.767.837

3.375.893

3.306.716

3.822.761

18.572.205

21.898.769 22.541.209 22.589.564

21.748.016

19.830.877

18.675.410

20.006.920

-

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

2010 2011 2012 2013 2014 2015 2016 2017

Aegean Free Zone Mersin Free Zone Istanbul Industrial

European Free Zone Bursa Free Zone Istanbul Trakya FZ

Istanbul Atatürk Airport FZ Other Free Zones TOTAL

Aegean Free Zone Employment

16

0

400

600

600

853 1.5

42

2.3

00

3.2

00

3.3

67 5

.20

0

6.1

00

7.1

50 9

.00

0

11.2

00

12.5

00

12.9

00

14.0

00

14.5

00

14.5

00

14.0

00

17.5

00 19.2

00

19.3

70

18.2

70

18.2

00

18.2

00

19.6

40

21.1

58

0

5.000

10.000

15.000

20.000

25.000

Employment of the Free Zones in Turkey

17

Total employment is 66.984 persons

Source: Ministery of Economy

Aegean Free Zone29%

Bursa Free Zone15%

Mersin Free Zone12%

Antalya Free Zone6%

İstanbul Industrial9%

Kocaeli Free Zone2%

TÜBİTAK-MAM2%

European Free Zone6%

Kayseri Free Zone6%

İzmir Free Zone3%

İstanbul Trakya4%

İstanbul Atatürk Airport

2%

Adana-Yumurtalık2%

Samsun Free Zone1%

Gaziantep Free Zone0%

Trabzon Free Zone0%

Denizli Free Zone0%

Rize Free Zone0%

Prominent Sectors at the AFZ

18

Automotive

Machinery

FoodProcessing

& Packaging

Textile

Electric & Electronics

Aviation, Avionics,

Aerospace

Medical Devices IT

Aegean Free Zone Total Investment Volume [1.000$]

19

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FOREIGN 604 3.49 2.53 4.20 1.91 1.91 7.02 10.6 13.8 25.4 18.2 18.8 27.4 36.2 43.6 32.0 32.0 36.3 59.6 51.6 108. 86.8 107. 126. 90.8 113. 112. 101.

DOMESTIC 450 793 2.42 2.53 1.30 1.27 6.04 7.37 7.86 1.50 2.38 1.33 7.32 20.9 17.5 19.6 15.3 8.76 17.6 5.30 10.9 76.9 54.9 47.9 61.6 25.1 41.8 26.1

TOTAL 1.05 4.28 4.96 6.73 3.22 3.19 13.0 17.9 21.7 26.9 20.5 20.2 34.8 57.1 61.1 51.6 47.3 45.0 77.3 56.9 119. 163. 162. 174. 152. 138. 156. 127.

1.0

54

4.2

85

4.9

62

6.7

32

3.2

25

3.1

92

13

.07

8

17

.97

8

21

.72

0

26

.91

9

20

.58

5

20

.21

0 3

4.8

22

57

.16

5

61

.14

9

51

.65

1

47

.35

5

45

.08

4

77

.33

5

56

.98

9

11

9.1

11

16

3.8

04

16

2.1

82

17

4.8

60

15

2.5

82

13

8.6

96

15

6.6

83

12

7.9

50

-

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

USD

(.0

00

)

DOMESTIC: $ 493 MillionFOREIGN: $ 1.275 BillionTOTAL: $ 1.769 Billion

Dispersion of User Companies

20

Manufacturing70%

Trading18%

Others12%

Breakdown of Job Creation

21

81%

19%

FOREIGN INVESTORS DOMESTIC INVESTORS

FOREIGN INVESTORS : 74

DOMESTIC INVESTORS : 102

TOTAL : 176

Some of the Leading Multinational Companies

22

Hugo Boss

Germany

(Manufacturing men’s apparel)

Delphi Diesel

USA

(Manufacturing injector nozzles, valves and pump parts for diesel

motors)

FTB Lisi Aerospace

France

(Manufacturing air craft fasteners)

Gates

USA

(Manufacturing tensioners and oilpump parts)

Safe Spice

England

(Spice sterilization and packaging)

Aero

Germany/Netherlands

(Manufacturing wind turbine blades for wind energy power plants)

Some of the Leading Multinational Companies

23

Eldor Electronics

Italy

(Producing ignition coils and bobbin of ABS braking systems)

PFW

Germany

(Manufacturing aviation fueltanks and tubes)

Mahle

Germany

(Manufacturing pistons andcylinder liners)

Fokker Elmo

Netherlands

(Manufacturing wire harnessesfor aircrafts )

Kale – Pratt & Whitney

Turkish/U.S.A.

(Manufacruring Aircraft engine parts)

DEZEGA

Ukraine

(Manufacturing respiratoryprotective equipment )

PIGEON - LANSINOH IN THE AFZ

Pigeon – Lansinoh in AFZ

Pigeon – Lansinoh in AFZ

Sector Specific Projects

• ESBAŞ has organized nearly 50 national and internationalconferences since 2001.

• We have hosted approximately 9.000 guests through its organizations todate.

• Turkey’s first Aerospace Clustering Association-ACA established as a result of ESBAŞ’s initiative.

• Izmir’s first aerospace sector specifictechnical school “AircraftTechnologies Technical School”established in cooperation with theEge University.

2626

Space Camp Turkey

27

• Space Camp Turkey is one of three space camps in the world which have brought together more than 200,000 young people from 60countries.

• As a space and science education center, Space Camp Turkey is primarily focused on motivating young people from around the world to pursue careers in science, math, and technology.

• Through interactive, space-related simulations, both youth and adults learn about communication, teamwork, and leadership in a dynamic, fun-filled environment.

Some of the Corporate Social Responsibility Projects

KİT-VAK Guest House Building Construction

Gaziemir WomenCounseling Center

Gaziemir Sports Hall

TEC Project DLD Sparking ProjectGaziemir Health Village

Project

28

THE AEGEAN FREE ZONE (AFZ)

550 Acres (220 Hectares) 99% FULL

Aegean Free Zone Occupancy Rate

Aegean Free Zone Expansion Area

30

A New Opportunity

AFZ From Past to Present | Entrance in 1990

32


33

AFZ From Past to Present | Land Subdivision 1991

34

AFZ From Past to Present | Land Subdivision 1991

35

AFZ From Past to Present | Sport Center Construction in 1991

36


37

AFZ From Past to Present | General Overview in 2003

38


39


40


41

www.esbas.com.tr

ありがとうございました。

ESBAŞ Marketing & Leasing [email protected]

TURKEY’S MODEL OF EXCELLENCE «AEGEAN FREE …What is a Free Zone 2 •A Free Zone is an area...

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