The Law No. 6676 on the Research and Development (R&D) Reform Package was published in Official Gazette on February 26, 2016 and will be entered into force on March 1, 2016. It enhances the opportunity of R&D incentives under the Income Tax Law (Law No. 191), Corporate Tax Law (Law No. 5520), and VAT Law (Law No. 3065). The Law targets to increase the share of R&D activities in the Turkish economy. Its main tax provisions are given below:

  • The Law amends the possibility and definition provisions of the aforementioned laws. So, “designing activities” are covered by the R&D incentives in certain tax laws.
  • Under article 14 of the Law No. 6676, income resulting from R&D, innovation and design activities in technology development centers is exempted from income and corporate tax until 31 December 2023;
  • Goods delivered to and services rendered in “special technology development centers” are exempt from VAT;
  • In accordance with article 9 of the Law, the Ministry of Science, Industry and Technology is authorized to determine the maximum rent that may be charged to special technology development centers;
  • Wages of R&D, innovation and design workers are exempt from any taxes until 31 December 2023 in accordance with article 14 of the Law;
  • According to article 15 of the Law, capital support payments to taxpayers in the field of special technology development centers are deductible for tax purposes up to TRL 500,000 until 31 December 2023;