Companies developing mobile applications are provided with cash incentives within the scope of export support by the Ministry of Trade. Mobile app support includes a partial reimbursement of expenditures ranging from 50% to 70%.
What are the Main Conditions for Mobile App Support?
- Being established as a joint-stock company or limited liability company in Turkey. Sole proprietorships are not eligible for this support. The owner of the company being of foreign origin does not prevent them from receiving support. In other means, foreign investors are always welcome!
- Expenditures must be made from a bank account in Turkey. Expenditures should not be made through a different individual or company. Furthermore, receiving support through non-bank payment methods is not possible.
- The company must have an application in the app store or Google Play account. Expenditures related to applications owned by individuals or other companies are not eligible for support.
- Expenditures must be directed towards foreign countries. Expenditures made for Turkey or in the Turkish language are not eligible for support.
- No outstanding tax or social security debt. The company should not have any outstanding debts during the accrual period. Alternatively, offsetting is possible.
What are the Types of Mobile Application Support?
The incentives provided for mobile application companies include:
- Software license support: The Ministry of Trade refunds up to 60% of the software expenses used in mobile application development, up to 70K USD per year. For more detailed information, visit https://www.finahukuk.com/2022/07/18/yazilim-lisans-hibeleri/
- Personnel support: Financial support equivalent to 50% of the gross salary is provided for newly employed engineers. Up to 5 employees can benefit from this support. Additional conditions include the employee not having previously worked for the company as an insured person and the absence of Turkish language support in the application.
- Market entry support: To facilitate market entry for mobile applications, 50% of the expenses for translation-voiceover, website, and hosting services are supported, up to 160K USD per year. There is a pre-approval mechanism for market entry support, directly provided by the Ministry.
- Advertisement support: 60% to 70% of advertising expenses in digital platforms can be covered under this support, but it is important to determine the platforms covered by the support. Up to 400.000 USD per application can be refunded. It is possible to reach this limit for up to 5 applications separately per year. The limit decreases to 60K USD from the 6th application onwards, significantly reducing User Acquisition (UA) costs.
- Store Commission support: 50% of the commission deducted from the platforms where the mobile application is published is covered by the government. Up to 80K USD per application can be refunded. Revenue obtained from the Turkish market for App Store and Google Play commissions is not supported. Up to 80K USD can be refunded for up to 5 applications separately per year, and the refund amount decreases after the 6th application.
- Reporting and Database Membership support: Software licenses like Adjust, Appsflyer, Mobile Action, Adapty, and Amplitude etc. are refunded up to 60%, up to 70K USD per year. There is a pre-approval mechanism for database support, directly provided by the Ministry.
Additionally, other mobile application support options include fair participation, sponsorship, hosting, and trademark registration.
To benefit from the mobile application support provided by the Ministry of Trade, it is necessary to become a member of the Exporters’ Association of Service Providers and submit basic information and documents to the Association. With this support, the government encourages companies developing mobile applications to engage in more foreign currency-generating activities and helps them achieve their goals more rapidly.
Specific conditions and annual maximum support amounts apply to each incentive title. If you would like more information about which specific incentives your mobile application may be eligible for, feel free to contact us.