Tax Incentives Regarding Research & Development In Turkey

2. Implementation of R&D deduction
- R&D deduction shall be applied for both annual and advance tax
return from the beginning of R&D activity.
- Calculated R&D deduction amount shall be deducted from profit
writing by related taxpayers into line of provisional tax return and
annual income (corporation) tax return.
- The amount of R&D deduction which could not be a matter of
deduction because of inadequacy of income shall be transferred to the
oncoming fiscal years.
3- Monitoring R&D expenditures in records
- Enterprises are obliged to capitalize the whole research and
development expenditures made for intangible properties in an
accounting period.
- But the expenditures, which are not aimed at intangible properties
do not have to be capitalized in the framework of the provisions of Tax
Procedure Law, could be directly accounted as expense.
- The capitalized R&D expenditures could be counted as expense by
means of depreciation. Either the R&D expenditures are capitalized or
accounted directly as expense; R&D deductions made in the concerned
period shall be accounted additionally for %100 R&D deduction that
shall be calculated separately from the whole R&D expenditures and
shall be made a subject of discount.
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