The sub clause (a) of the first clause of article 10 of the Corporate Tax Law Numbered 5520 related to the R&D discount has been abolished as of the date of 09.08.2016 in compliance with article 57 of the law numbered 6758.
The law on the amendment of some laws on the purpose of improvement of the investment environment numbered 6728 and article 3/A have been added to the law on the support of research, development and design activities numbered 5746. R&D discount institution related to the R&D and innovation activities existing within the structure of income and corporate taxpayers’ corporations has been specified in article 3/A of the law numbered 5746.
Accordingly, 100% of research and development expenses related to searching new technology and information developed within the structure of income and corporate taxpayers’ corporations will be a subject for discount on the determination of profit in line with article 10 of the Corporate Tax Law numbered 5520 and article 89 of the law numbered 193; providing that these projects are regarded as R&D and innovation projects by the Ministry of Science, Industry and Technology.
Herewith, R&D discount will be applied to the applications done within the scope of article 3/A of the law numbered 5746 as of the date of 09.08.2016 as long as the law numbered 5746 and the related legislations are taken into consideration about the discounts related to research and development projects on searching new technology and information. On the other hand, R&D discount will be applied to the projects being subject to the applications done before 09.08.2016 within the scope of General Communiqué on Corporate Tax with serial number 1 according to the provisions (the provisions before the sub clause (a) of the first clause of article 10 of the Corporate Tax Law was amended with the Law numbered 6728).
Source: Corporate Tax Law
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