R&D Incentives
"What incentives are available for R&D activities in Turkey?"
Quick Answer
R&D Law provides tax deductions, wage tax exemptions, and social security support for certified R&D Centers subject to minimum full-time equivalent R&D personnel requirements (commonly 50 FTE for R&D Centers) and other eligibility conditions.
Overview of R&D Incentives (Law No. 5746)
R&D incentives in Turkey are primarily structured under Law No. 5746 (R&D and Design Activities Support) and its secondary legislation, plus additional regimes (such as Technology Development Zones) depending on where and how the work is performed; eligibility and benefit scope depend on certification (R&D Center/Design Center), project qualification, personnel roles, and documentation.
Key Points to Remember
- R&D deduction/allowance mechanics
- Income tax withholding incentive for qualified R&D/support personnel
- SSI premium employer share support where applicable
- Stamp duty exemptions for qualifying papers
- Certification and audit/documentation requirements
- Interaction rules with other incentive regimes
Practical Compliance and Risk Points
Effective tax planning requires understanding both domestic Turkish tax law and applicable international tax treaties. Transfer pricing rules follow OECD guidelines and require proper documentation.
Corporate tax rates and surcharges change over time and may differ by taxpayer type; confirm the current rate for your year and status.
Need Expert Legal Guidance?
Our team can help you assess eligibility, structure your R&D setup (center vs project-based), prepare documentation, and manage compliance for R&D incentives under Turkish law.
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