Some amendments regarding the current research and development (R&D) incentives were introduced on the basis of Turkish Law no. 6676. Companies those carry out R&D activities in Turkey may benefit from the R&D incentives and aids for R&D activities set forth under the following legislative provisions:

Incentives and aids under Law no. 5746:

  • R&D and design deduction: All R&D, design and innovation expenditures are deductible until 31st December 2023 in the purpose of the corporate profit. Non-deductible of R&D amounts can be carried forward to following fiscal periods by being increased at the readjustment rate.
  • Incentive on income tax withheld: Allowances received by R&D, design and support personnel in return for R&D and design work can be exempted with 95%, 90% and 80% from income tax depending on the education status of the personnel.
  • Social security premium support: Half of the social security employer’s share calculated on the allowances took by R&D, design and support personnel in return for R&D and design work can be funded from the fund to be placed in the Ministry of Finance budget.
  • Stamp duty exemption: Papers drawn up for R&D, design and innovation activities, as well as papers drawn up according to the remunerations of the personnel employed in R&D and design activities may free from stamp duty.

Incentives and aids under Law no. 4691:

  • Corporate tax exemption: Gains derived by taxpayers operating in technology development zones completely from software, R&D and design activities carried out in these zones are exempt from income and corporate tax until 31st December 2023.
  • Income tax exemption: Remunerations received by R&D, design and support personnel working in technology development zones for such work are exempt from income tax and stamp duty until 31 December 2023.
  • Social security premium support: Half of the social security premium employer’s share calculated on the remunerations received by R&D, design and support personnel in return for R&D work can be paid from the fund to be placed in the Ministry of Finance budget.