• Tax Benefits

1% VAT Advantage

You can make many new machinery investments with 1% VAT instead of 10% - 20% VAT through leasing financing and also benefit from all other advantages of leasing.

Please find the list of equipment whose VAT is discounted to 1% below.

Equipment VAT
Rate

Product Group
New Purchases
2. Hand Purchases
Excavator
%1
%10
Forklift
%1
%20
Backhoe Loader
%1
%10
Crane
%1
%20
Grader
%1
%20
Platform
%1
%20
Elevator
%1
%20
Loader
%1
%20
Telehandler
%1
%20
Cylinders
%1
%20
Product Group
New Purchases
2. Hand Purchases
Plastic Injection Machines
%1
%20
Extruders
%1
%20
Food Processing Machines
%1
%20
CNC Wood Processing Machines
%1
%20
Panel Sizing and Panel Banding Machines
%1
%20
Paper Finishing Machines
%1
%20
Packaging Machines
%1
%20
Glass Processing Machines
%1
%20
Marble and Ore Processing Machines
%1
%20
Industrial Robot
%1
%20
Product Group
New Purchases
2. Hand Purchases
Embroidery Machines
%1
%10
Sewing Machines
%1
%10
Knitting Machines
%1
%10
Loom Machines
%1
%20
Yarn Machines
%1
%20
Product Group
New Purchases
2. Hand Purchases
CNC Turning Lathe
%1
%10
CNC Vertical and Horizontal Machining
%1
%20
CNC Milling Cutter
%1
%10
CNC Press
%1
%20
Product Group
New Purchases
2. Hand Purchases
Generator
%1
%20

Foreign Currency Borrowing Advantages

According to the amendment in Decision no:32 under Law on Protection of the Value of Turkish Currency, there are some limitations about borrowing with foreign money. It is not possible to borrow with foreign currency except for exemptions stated in Decision no: 32. Products with 1% VAT to be purchased through leasing are one of these exemptions. You can borrow foreign currency benefitting from this and other exemptions for purchases you make through leasing.

Exemptions

  • Machinery and devices under 1% VAT exemptions to be purchased through leasing,
  • Equipment to be purchased under investment incentive,
  • Even if you do not have incentive and the equipment you will buy is not included in 1% VAT exemption, up to your total foreign currency income during the last 3 years,
  • It is possible to borrow with USD and EUR in case you have foreign currency income and your total loan balance is 15 million USD or above.

Click for article of the Law.

The Attached amendment was made in the Decision on Amending the Decision no: 32 on Protection of the Value of Turkish Currency as per the Cabinet Decision numbered 2018/11185 and published in the Official Gazette dated 25.01.2018.

With this amendment, it became a general rule for persons residing in Turkey to obtain foreign currency credit within Turkey must have foreign currency income.

As per the reference by the same decision to 17/A of the main decision, there are some exemptions to this general rule.

In case one or several of such exemptions corresponds to relevant leasing agreement, this general rule will not be applied and borrowing with foreign currency credit can be done:

  • Foreign Currency Credit to be used by Public bodies and authorities, banks and Leasing Companies, Factoring Companies and Financing Companies residing in Turkey,
  • Foreign Currency Credit to be used by persons residing in Turkey and whose Credit Balance is 15 million USD or above during date of use,
  • Foreign Currency Credit to be used by persons residing in Turkey and who are foreseen to receive credit under Investment Incentive Certificate,
  • Financing of machinery and devices included in customs tariff statistics positions listed as 17th in the list no (I) of the Decision on Determination of Value Added Tax Ratios to be Applied for Goods and Services (except for sections, parts, accessories and ancillaries as well as used parts) and leasing transactions conducted with foreign currency for purchase of such equipment,
  • Foreign Currency Credits to be used by persons residing in Turkey and undertaking defence industry projects approved by Undersecretariat of Defence Industry or tenders of persons residing in Turkey, winning the tender regarding their activities for domestic tenders put out to international tenders (for example, leasing transactions to be conducted by successful tender on 3rd Airport),
  • Foreign Currency Credits to be used by persons residing in Turkey and appointed to carry out projects to be conducted under public-private sector cooperation model,
  • Foreign Currency Credits to be used by legal persons residing in Turkey to be used for financing of investments related to renewable energy resources under purchase guarantee in line with the Law on Use of Renewable Energy Sources for Production of Electricity Power dated 15.05.2005 and no: 5346,
  • Foreign Currency Credits to be used no to exceed total possible foreign currency incomes certified by persons residing in Turkey who do not have foreign currency income during the last 3 financial years, provided that they certify their possible foreign currency incomes and their connection with services and activities earning foreign currency as well as sales and deliveries deemed as exportation, transit trade and importation,
  • In case the risk balance of customers who have foreign currency income is 15 million USD or above as of credit usage date, they can obtain foreign currency credit within Turkey regardless of their foreign currency income. In case the customer’s current risk balance is below 15 million USD, they can obtain foreign currency credit within Turkey up to the total amount of the foreign currency gains they had from services and activities earning foreign currency as well as their sales and deliveries which are deemed as exportation, transit trade and importation during the last three financial years. In this case, the total of credit amount to be used and the current credit risk balance must not exceed the foreign currency incomes of the company during the last three financial years.
  • Foreign Currency Credits to be used by legal persons residing in Turkey to be used in financing of investments regarding renewable energy sources under purchase guarantee in line with the Law on Use of Renewable Energy Sources for Production of Electricity Power dated 15.05.2005 and no: 5346, - Foreign Currency Credits to be used by persons residing in Turkey who win public tenders under the Law on Privatization Applications dated 24.11.1994 and no: 4046 as well as public tenders amount of which are determined as foreign currency.
  • Foreign Currency Credits to be used by persons residing in Turkey established for buying an existing or newly founded company’s shares and which have no activities other than realizing such purpose.
  • Foreign Currency Credits to be used to add to the capital of the person residing in Turkey under the said projects and which are partners of persons appointed to carry out projects to be conducted under public-private sector cooperation model.
  • Foreign Currency Credits to be used by legal persons residing in Turkey under the said projects and which are partners of persons appointed to carry out projects to be conducted under public-private sector cooperation model.

Sell and Lease Back Advantages

Selling and buying title deed fees arising out of real estate purchase-buying transactions are held exempt for sell and lease back transactions. The title deed fee is determined as 4.55 per mile instead of 4% when the real estate is purchased by a leasing company. Title deed fee will not be payable during transfer of real estate to the lessee at the end of the term.

Also, the profit earned arising from book value of assets an selling it to Leasing company during sell and lease back transactions is exempted from corporate tax. Please click for details of corporate tax and VAT exemptions.

How the Leasing Process Works

Decide on your investment and we will offer you payment plan alternatives suitable for your cash flow according to your investment decision.

Let's sign the financial leasing contract after the leasing limit allocated quickly on the payment plan you have decided.

After the signed contract, all purchasing processes related to the equipment are managed by us. Our expert team will support you in all operational processes such as incentives, imports, customs, etc. You will receive your equipment after these processes are completed.

The transfer of ownership of the equipment is carried out when you pay the ownership transfer fee at the end of the payment schedule.

Tax Benefits

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Frequently Asked Questions

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Assets for Sale

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Frequently Asked Questions

All kinds of joint stock companies, limited liability companies, sole proprietorships, partnerships, self-employed persons (all kinds of persons and organizations authorized to take legal action) and commercial enterprises can benefit from all the conveniences and advantages by choosing leasing in their investments.

Provided that the investment sub-amount is met, investments included in the incentive certificate are included in the leasing, and the advantages and exemptions within the scope of the incentive are utilized.

All costs that may occur are included in the payment plan, depending on the customer's request.

You can make your leasing payments in Turkish Lira or in USD or EUR by taking advantage of the exceptions in the Law No. 32

Yes, you can. Even if you are not a bank customer, we help you with your leasing requests.

No, it will be not affected. A limit is provided independent of your limits in the bank.

To see the equipment with 1% VAT please click.

No, leasing payments cannot be used as an expense. Only the interest portion is shown as an expense.

Garanti BBVA Leasing is the best way to finance your investments

You can lease all kinds of machinery and equipment subject to depreciation.
  • Get fast results with our expert staff and superiority of our technological infrastructure.
  • With Garanti BBVA Leasing, you can take advantage of the opportunity to purchase the equipment you need with payment plans suitable for your cash flow in medium and long terms.
  • Get your equipment by leasing. Let us handle all operational processes for you, such as purchasing, import, insurance.
  • With leasing financing, you can realize your many new machinery investments with 1% VAT. Click for the equipment list with 1% VAT.
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