In R&D projects supported by the Scientific and Technological Research Council of Türkiye, information has been requested on whether the determined man-month labor and actual labor expenditures can be subject to R&D deduction and income tax withholding incentive. According to Law No. 5746, the wages of the personnel working within the scope of R&D projects can benefit from income tax withholding incentives under certain conditions. In addition, expenditures made for these projects can be considered within the scope of R&D deduction, but the limits specified in the support decision letter should not be exceeded. Expenditures covered by grant support are not considered as income in corporate income and cannot be subject to R&D deduction.
Source: Revenue Admin.
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