Technology Development Zones
"What benefits do Technology Development Zones (Technoparks) offer?"
Quick Answer
Technology Development Zones (TDZs or “Technoparks”) provide tax incentives until 31 December 2028 for qualifying R&D, design, and software activities, including (i) an income/corporate tax incentive on certain profits, (ii) a VAT exemption for specific software deliveries developed in the TDZ, and (iii) an income tax withholding incentive for eligible R&D, design, and support staff wages.
Turkish Tax Framework
Technology Development Zones in Turkey are primarily governed by the Technology Development Zones Law No. 4691 and its implementing rules, alongside relevant provisions in the Corporate Tax and VAT legislation.
Key Points to Remember
- As a general rule, the corporate tax rate is 25% (subject to sector specific rules and legislative changes)
- The standard VAT rate is 20%, with reduced rates and exemptions available for specific goods and services
- Double tax treaties may reduce withholding tax rates
- Tax incentives are available for qualifying investments
Tax Planning Considerations
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.
Businesses should work with qualified tax advisors to optimize their tax position while ensuring full compliance with Turkish tax authorities' requirements.
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We share general information on Technoparks and R&D incentives in Türkiye. Contacting us does not create a lawyer client relationship.
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