INFORMATION PORTAL

WHAT ARE THE YOUNG ENTREPRENEUR INCENTIVE AMOUNT AND ADVANTAGES?

In recent years, the desire among young entrepreneurs in Türkiye to start their own business and step into the business world has been increasing significantly. The incentives and advantages offered to young entrepreneurs thanks to the support of the state and universities increase the courage of more people in this field. Young entrepreneur support provides important support to young people with various incentives such as tax exemption and Bağkur premium support.

There are some conditions to benefit from young entrepreneur support. Entrepreneurs who want to benefit from the support must be over the age of 18 and have not completed the age of 29. In addition, they must be within the scope of the young entrepreneur exception in terms of earnings according to the repeated Article 20 of the Income Tax Law and must have opened a taxpayer for the first time due to commercial or self-employment activity.

Entrepreneurs who benefit from the young entrepreneur support will be exempt from paying tax on up to 150.000 TL of their income thanks to the income tax exemption. This exemption amount will be updated every year and will be valid for 3 years. This will help young entrepreneurs to focus on their business more comfortably by reducing their financial burden in the start-up period.

However, Bağkur premiums are also covered by the treasury for 1 year within the scope of young entrepreneur support. Thanks to this advantage, young entrepreneurs will be able to move away from concerns about paying social security premiums and further reduce their costs. For example, assuming that the lowest monthly Bağkur premium to be paid in 2023 is 3,452.76 TL, a total of 41,433.12 TL premium that young entrepreneurs have to pay for 12 months will be covered by the treasury.

Young entrepreneur support provides an important support to young people who dream of starting a business and encourages the spirit of entrepreneurship. Thanks to these incentives, more young people are encouraged to start their own business and make positive contributions to the business world. Therefore, it has become an important goal to support young people to discover their entrepreneurial potential and take successful steps in business life.

Law on Young Entrepreneur Support

The following subparagraph has been added to the first paragraph of Article 81 of the Social Security and General Health Insurance Law dated 31.05.2006 and numbered 5510

31.12.1960 dated 31.12.1960 and numbered 193 within the scope of Article 20 of the Income Tax Law dated 31.12.1960 and numbered 193, the premiums of real persons who benefit from the earnings exemption for young entrepreneurs and who have completed the age of 18 and have not completed the age of 29 as of the taxpayer start date, within the scope of subparagraph 1 of paragraph 1 (b) of paragraph 1 of Article 4 of this Law, as of 01/06/2018, the premiums of real persons who are considered insured for the first time are covered by the Treasury for 1 year over the lower limit of earnings based on the premium determined in accordance with Article 82. In ordinary partnerships and sole proprietorship partnerships, only one partner can benefit from this paragraph.

Accordingly, young entrepreneurs between the ages of 18-29 who establish a sole proprietorship for the first time as of 01.06.2018 will be provided with Bağkur premium support for 1 year. This incentive, where the premium of 3.452,76 TL to be paid monthly is covered by the state treasury, is limited to 1 year. Thus, the total amount of support to be provided to young entrepreneurs for 12 months will be 41,433.12 TL.