Tax Incentives Regarding Research & Development In Turkey

INDEX
PREFACE ...............................................................................................5
INTRODUCTION ...................................................................................6
A) Arrangements Laid Down In Income Tax and
Corporation Tax Law ..................................................................7
1. Definitions .........................................................................................7
1.1. R&D activity .........................................................................7
1.2. R&D project .........................................................................7
2. Implementation of R&D deduction ...............................................8
3. Monitoring R&D expenditures in records ......................................8
4. Accounting expenditures in R&D projects .....................................9
5. Transfer of capitalized assets .........................................................9
6. Office of application, necessary documents and
other particular points ..................................................................9
7. Supports for R&D provided by other institutions .........................10
8. R&D expenditures made in developing technology
zones and in free trade zones .....................................................10
B) Regulations in Law No: 5746 Concerning the Support of
Research and Development Activities .......................................11
1. Definitions ..................................................................................11
1.1. R&D activity .......................................................................11
1.2. Innovation activities ............................................................12
1.3. R&D center ........................................................................12
1.4. Technology centers ............................................................12
1.5. R&D project .......................................................................12
1.6. Cooperation projects before pre-competition .....................12
1.7. Capital of techno enterprise ................................................12
1.8. R&D staff ...........................................................................13
1.9. Back-up staff ......................................................................13
2. R&D deduction ...........................................................................13
2.1. Scope of implementation ....................................................13
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 ...............................14
2.3. Showing calculated R&D deduction in the return ................14
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 ............................................................14