Tax Incentives Regarding Research & Development In Turkey

e submitted to the concerning tax office in the annex of withholding
tax return.
Taxpayers shall demonstrate the sum of “Amount that shall be
subjected to cancellation” taking place in the last column of Annex:1
“Communiqué Related to the Income Tax Stoppage in scope of R&D”
in the (18/c) numbered line, cancelled amount of the stoppage over
the wage payments in accordance with the Law numbered 5746, of
the “Basis and Tax Notification” part of Table 1. This amount shall
be deducted from sum of income tax deduction demonstrated in
line numbered (17/b) and the amount of remaining income tax after
cancellation shall be demonstrated in line numbered (19).
3.2. Initial of the Application
Implementation of income tax withholding incentive has been put
into effect from 01.04.2008. It shall be benefited within the framework
procedures and rules of “Implementation Regulation and Auditing for
the Support of Research and Development Activities” published under
that Law from incentive implementation.
Therefore; under the provisions of the mentioned regulation;
- At R&D centers, when R&D certificate is drawn ;
- on pre-competition cooperation projects, when project contract
come into force;
- At technology center enterprises, when R&D and innovation
project is accepted;
- When business plan is accepted by public administration capital
support provided to technological enterprises;
- On R&D and innovation projects supported by public enterprises
and establishments, foundations established pursuant by Law or
projects that supported by international funds or executed by
TUBITAK when support decision document is written or project
contract come into force;
shall be benefited from income tax incentives from the date
mentioned above.
On the other hand; in the R&D and innovation projects starting
before from effective date of Law no 5746;
- In the case of putting into effect before 01.04.2008 the
support decision document or the project contract’s for the R&D and
innovation projects supported by public enterprises and establishments,
foundations established pursuant by Law or projects that supported by
international funds or executed by TUBITAK, from 01.04.2008;
- On R&D and innovation projects executed at R&D centers, when
R&D certificate is drawn;
shall be benefited from incentive provisions for the income tax
withholding from that date.
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