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.

2012/3305 Decree Scope
Large-Scale Incentive Type
5746 R&D Law
FROM VISION TO VALUE
AKBAŞ ADVISORY

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

2012/3305

Decision on State Aids in Investments

Large-scale and strategic investment statuses, chemicals sector priority area

5746

Law on Support for Research, Development and Design Activities

R&D centre establishment, 150% R&D deduction

1501

TÜBİTAK Industrial R&D Projects Grant Programme

Chemical process and product development projects

Incentive Profile

Chemicals Sector Quick Reference

Priority Incentive Type Large-Scale + Strategic
Minimum Investment (Large-Scale) Varies by region
R&D Eligibility
Yes
OIZ Incentive Advantage
Within Scope
Average Process 6 to 14 months
Pharmaceutical Sector Link Common legislation in API and raw material production
Request a Preliminary Analysis

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.

01

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.

02

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.

03

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.

04

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.

05

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.

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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.