1- R&D Deduction
- R&D expenditures incurred in the enterprises functioning as technology centers,
- R&D expenditures incurred in the R&D centers,
- Public institutions, R&D and innovation projects supported by public enterprises and establishments, foundations established pursuant to the Law or projects that supported by international funds,
- Pre-competition cooperation projects,
- Enterprises benefit from the capital support provided to techno enterprises;
All of the R&D and innovation expenditures mentioned above and;
- One half of the increase in expenditures compared to the previous year at R&D centers that recruit 500 and more equivalent full-time R&D personnel, are made subject of discount while determining the corporate income and trade income in accordance with article 10 of Corporate Tax Law and article 89 of Income Tax Law.
Besides, these expenditures shall be redeemed by depreciation through the Tax Procedure Law (Law no: 213) When there is no economic asset created, these expenditures shall be directly recorded as an expense. The R&D discount that was not made the subject of discount in the related fiscal year due to the inadequacy of profits can be transferred to the following fiscal years. The transferred amount shall be increased by the revaluation rate determined for each year according to Law No: 213 in the following years. (Law No: 5746 a.3/1)
2- Income Tax Withholding Incentives
Wages of R&D and back-up staff except public servants recruited in the following enterprises are exempt from income tax, at a rate of %90 for staff with PhD degrees, and at a rate of %80 for the other staff:
– Staff recruited in enterprises that function as technology centers,
– Staff recruited in the R&D centers;
– Staff recruited in R&D and innovation projects supported by public enterprises and establishments, foundations established pursuant to the Law or projects that are supported by international funds,
– Staff recruited in R&D and innovation projects undertaken by The Scientific and Technological Research Council of Turkey (TUBITAK),
– Staff recruited in enterprises that are entitled to benefit from the capital support provided to technological enterprises,
– Staff recruited in pre-competition cooperation projects.
Besides, the income tax calculated after applying minimum living discount over wages of R&D and back-up staff stated in the 5746 Numbered Encouragement of Research and Development Law, are cancelled at a rate of %90 for staff with PhD degrees, and at a rate of %80 for the other staff, by deducting from the tax assessed over withholding tax return until 31/12/2013. (Income Tax Law Temporary article 75)
3- Insurance Premium Support
For each employee, one half of the insurance premium of the employer which is calculated over the wages of the R&D and back-up staff gained in the scope of the R&D and innovation activities shall be funded by a budget of the Ministry of Finance for five years. The insurance premium of personnel, whose wages are exempted from income tax pursuant to provisional article 2 of Law numbered 4691 concerning Technology Developing Zones, calculated over their exempted wages and also one half of the employer’s share of insurance Premium shall be funded by a budget of the Ministry of Finance for five years at maximum as long as exemption implemented. (Law No: 5746 a.3/3)
4- Stamp Duty Exemption
All documents drawn up in connection of all types of R&D and innovation activities pursuant to Law Numbered 5746 have been exempted from stamp duty.(Law No: 5746 a.3/4)
5- Techno Enterprise Capital Support
In order to support the transformation of technology and innovation oriented business ideas to enterprises having high potential in creating added value and qualified staff; techno enterprise capital support of up to 100,000 TL shall be granted for once without the demand for a guarantee. The techno enterprise capital support shall be granted to the persons having formal education and will be graduated from any field of universities in one year; master students, doctorate students or had the bachelor, master or doctorate degree maximum five years ago before the pre-application date. (Law No: 5746 a.3/5)
Source: Revenue Administration
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