Tax Incentives Regarding Research & Development In Turkey

The complete R&D expenditures and;
- One half of the increase in expenditures compared to the previous
year at R&D centers that recruit 500 and more equivalent full-time R&D
personnel,
are made subject of discount while determining the cooperate
earning and commercial earning in accordance with article 10 of
Cooperate Tax Law and article 89 of Income Tax Law.
2.2. The position of taxpayers benefit from the R&D deductions
in scope of Law no. 5746 in view of Law no 193 and Law no 5520
Those enterprises that benefit from deductions envisaged,
- In the scope of Law numbered 5746
shall not separately benefit from the same nature provided in
- Article 89/1-9 of Law Numbered 193 and in Article 10/I-(a) of Law
Numbered 5520.
2.3. Showing calculated R&D deductions in the return
Calculated R&D deductions are written on relevant line of income
tax returns, corporate tax returns and provisional tax returns.
2.4. The R&D discount that was not made the subject of
discount in the pertinent fiscal year due to the inadequacy of
profit
- The R&D discount that was not made the subject of discount
in the pertinent fiscal year due to the inadequacy of profits can be
transferred to the oncoming fiscal years.
- The transferred totals in the following years shall be taken into
account by increasing the rate of revaluation determined for each year
according to Law No: 213.
2.5. Redeeming of the expenditures in scope of R&D and
innovation and projects that are not worked out by various
reasons
These expenditures shall be redeemed by depreciation through the
Law numbered 213. When there is no opportunity to complete the
project or when economic assets are not created because of the failure
of the project, the expenditure totals within R&D and innovation that
capitalized previous years shall be directly recorded as an expense.
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