On 16 December 2023, Turkey published Presidential Decision No. 7953 in the Official Gazette, outlining new thresholds and rates aimed at supporting research and development (R&D) activities for taxpayers operating within technology development zones. The key measures of the decision include:
- Increasing the income exemption threshold from 1 million Turkish lira to 2 million Turkish lira;
- Increasing the percentage of earnings exempted for R&D activities from 2% to 3%; and
- increasing the annual liability cap to 100 million Turkish lira from the previous 20 million Turkish lira.
Effective from 1 January 2024, these changes are designed to encourage and support entities engaged in R&D within technology development zones by providing more favorable financial incentives.
