SECTOR-SPECIFIC SOLUTIONS · CHEMICALS & PETROCHEMICALS
Chemicals investments'
incentive and financing map.
The chemicals and petrochemicals sector is one of the rare sectors that accommodates large-scale capital investments and intensive R&D activities within the same structure. In this sector, which is directly linked to the pharmaceutical industry's raw material supply chain, identifying the correct incentive status is of critical importance.
Sector Profile
The chemicals and petrochemicals sector features among priority areas in Turkey's investment incentive legislation in terms of large-scale and strategic investment statuses. This sector, which has a broad investment base ranging from raw material production to complex petrochemical processes, energy efficiency systems and R&D centres, each type of investment triggers a different incentive mechanism. Correctly identifying the status from the outset significantly increases the incentive value.
Incentive Applicability Table
| Investment Type | Incentive Route | Priority |
|---|---|---|
| Raw material manufacturing facility | STB Large-Scale Investment Incentive | High |
| Petrochemical complex | STB Strategic Investment Incentive | High |
| R&D centre establishment | Law No. 5746 + TÜBİTAK 1501 | High |
| Energy efficiency systems | STB Regional Investment Incentive | Medium |
| Production capacity expansion | STB Large-Scale or Regional | Medium |
Key Legal References
Decision on State Aids in Investments
Large-scale and strategic investment statuses, chemicals sector priority area
Law on Support for Research, Development and Design Activities
R&D centre establishment, 150% R&D deduction
TÜBİTAK Industrial R&D Projects Grant Programme
Chemical process and product development projects
Incentive Profile
Chemicals Sector Quick Reference
Applicable Services
Services and supports
used in this sector.
STB
Large-Scale Investment Incentive
Raw material manufacturing and capacity expansion investments in the chemicals sector can enter Large-Scale status under specific sector lists and minimum investment amounts. Tax reduction rates reach the highest values.
STB
Strategic Investment Incentive
Petrochemical complex investments can qualify for strategic status due to Turkey's import dependency. Maximum support package and investment site allocation apply within this scope.
LAW NO. 5746
R&D Centre (Law No. 5746)
R&D centre establishment in chemicals companies provides 150% R&D deduction, SGK support and income tax withholding exemption.
TÜBİTAK
1501 Industrial R&D Support
Chemical process and product development projects can benefit from grant support under TÜBİTAK 1501. New synthesis routes, process optimisation and material development are within scope.
FINANCIAL ADVISORY
Tax Advisory
VAT refund, investment contribution tracking and tax deduction application in chemicals investments require correct structuring. Process risks in large-scale capital expenditures must be managed.
FINANCIAL ADVISORY
Accounting & Financial Reporting
Accounting for R&D expenditures, tracking incentive-covered spending and periodic reporting in chemicals companies require regular expertise.
Process Management
How does the incentive process
work in chemicals investment?
From investment type determination to Ministry application, from R&D structure planning to completion visa — we manage every step.
Preliminary Assessment
The investment type, production capacity and sector position within the pharmaceutical supply chain are examined. Import dependency rate, domestic production potential and R&D capacity are key criteria in status determination.
Status Optimisation
Large-scale vs. strategic status comparison is performed. If an R&D component exists, it is planned together with TÜBİTAK programme. Investment amount and scope are configured to maximise incentive value.
Technical File Preparation
Environmental impact assessment documents, production technology specifications and import dependency analyses are prepared. Domestic added-value calculations and sector list compliance are verified.
Ministry Application & Follow-Up
STB application is prepared and followed up during the Ministry process. Necessary corrections and additional documents are addressed on time. Certificate extension procedures are also managed.
Production Stage Monitoring
Completion visa procedures, initiation of tax reduction application and VAT refund follow-up are managed. The impact of legislative changes on the investment is continuously monitored.
Frequently Asked Questions
Common questions about
chemicals & petrochemicals.
What is the difference between large-scale and strategic investment incentive in the chemicals sector?
Large-Scale Incentive is accessed when investments meet specific sector lists and minimum investment amounts. For strategic status, import dependency documentation and a higher investment amount threshold are also required. Petrochemical investments that can document import dependency are better suited to strategic status; raw material manufacturing investments generally qualify more readily for large-scale status.
Can a chemicals company also apply for TÜBİTAK support?
Yes. Chemical process development, new synthesis routes and material R&D projects can benefit from grant support under TÜBİTAK 1501. If the project meets the scope of priority areas, programme 1511 offers higher grant rates. STB incentive certificate and TÜBİTAK support can run together; however, the same expenditure item cannot be submitted to both mechanisms.
Do investments within OIZs receive higher incentive support in the chemicals sector?
Yes. Investments within Organised Industrial Zones are considered to be in the next higher region, so the incentive rate effectively increases by one region. This is particularly advantageous for investments in regions 3 and 4. The OIZ advantage must be taken into account in the investment site decision.
How is the connection between chemicals and pharmaceutical manufacturing managed in incentives?
API (Active Pharmaceutical Ingredient) and fine chemicals manufacturers are assessed under both chemicals and pharmaceutical sector criteria. These companies can make use of the pharmaceutical sector's strategic investment incentive while also benefiting from large-scale incentive in the chemicals sector. The right classification must be established before application; choosing the wrong sector code may cause loss of significant advantages.
How is an R&D centre established in a petrochemicals company?
To establish an R&D centre under Law No. 5746, at least 15 full-time R&D personnel must be employed. In petrochemicals, this threshold is more feasible for companies with large engineering teams. R&D expenditures must be documented separately from production expenditures; the centre must operate in a physically separate space. The accreditation process takes 6 to 12 months on average.
chemicals investment analysis
Let us build the right incentive structure for your investment.
A sector-specific incentive analysis is carried out for your investment type, sector position and production capacity.
Request a MeetingRELATED SERVICES
Advisory services we provide in this sector
STB · Investment Incentive
STB Investment Incentive Applications
Large-scale and strategic incentive certificate preparation for chemicals investments; machinery-equipment exemption and tax reduction elements.
5746 · R&D Centre
R&D Centre Incentives
Chemicals and petrochemicals R&D centre establishment, accreditation and process management. 150% R&D deduction and SGK support.
TÜBİTAK · Support Programmes
TÜBİTAK National Support Programmes
For chemical process and product development projects: 1501 and 1511 programme grant application, reporting and audit process.
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Let us build the right incentive strategy
for your chemicals investment.
We manage every step together from raw material production to petrochemical complex, R&D centre to completion visa.