Tax Exemption and R&D Discounts Consultancy

Vergi İstisna ve Arge İndirimleri Danışmanlığı

Tax Exemption and R&D Discounts Consultancy, R&D and Design Discounts, 100% of the expenditures made can be deducted from the total corporate tax assessment.

Primary Material and Supply Expenses: It covers all kinds of material expenses apart from amortization expenses such as primary materials, auxiliary materials, operating materials, by-products, spare products, prototypes and tangible assets.

Amortizations: It includes amortization of all kinds that are acquired within the scope of R&D activities. The amortization of machinery and equipment used in activities other than R&D is calculated based on the number of days the equipment is used within the context of R&D.

Personnel Expenses: The wages of support personnel within the cover of the income tax withholding incentive application and such expenses are subject to deduction as long as if not exceeding 10% of the number of FTE R&D or Design personnel.

General Expenses: The wages of the support personnel within the tax withholding incentive application and such expenses are subject to deduction, as long as if not exceed 10% of the number of FTE R&D or Design personnel.

External Benefits and Services: Excluding regular maintenance and repair expenses from other domestic or foreign institutions outside the enterprise; it includes payments for professional or technical support, testing, laboratory, legal advice and analysis services. (Outsourced services cannot exceed 50% of the total expenditure)

Taxes, Duties and Fees: Taxes and similar taxes, duties and charges paid for immovables where direct R&D, innovation or design activities are carried out receive a discount in this context.

Tax Advantage on R&D

R&D Discount: 100% of your R&D-related expenditures will be applied as an R&D deduction, that is, as a deduction from the Corporate Tax Assessment.

Transfer of R&D Discount: If the R&D company is not in profit, the discount right is not lost, and it is transferred by increasing the next LCR (revaluation rate).

Income Tax Withholding Incentive: Of the income tax calculated on the wages paid to R&D and support personnel, 90% of those with a doctorate and 80% of others are exempt from income tax.

Insurance Premium Support (Employer’s Share): Up to ten per cent of the R&D personnel involved in R&D projects and included in this list, half of the employer’s share of the insurance premium will be paid by the Treasury for each employee until 2023. is welcomed.

Stamp Duty Incentive / Exception: Papers issued for all kinds of R&D and innovation activities within the scope of Law No. 5746 are exempt from stamp tax.

Stamp Duty Incentive on Fees: Papers issued regarding wages are exempt from stamp tax.

It is valid until 31.12.2023.

Procedure to Benefit from R&D Discount

The evaluation of the application is made according to the own legislation of the public institution or organization to which the application is made.

For R&D projects supported by international R&D cooperation programs to benefit from the incentives; there must be:

  • Project application to the international program,
  • Information about the applied program,
  • Support letter or agreement,
  • Information revealing the contribution of the enterprise that will benefit from the incentive in the project,

As AG Audit, we are Turkey’s largest and most successful consultancy firm in the field of “Grant Projects and State Support Consultancy”. Since 2007, we have carried out more than 350 grant projects. We provide consultancy services to our customers in TÜBİTAK, R&D Center, KOSGEB, Development Agency, DTM Export Supports, Turquality Projects and enable them to benefit from grant donations. Our consultancy consists of walking with our client from A to Z; from the beginning of the project to the end. Here is how we serve you:

  • We mature your project, write the project and submit it to the relevant institution.
  • We guide the project approval process, council and referee visits, and increase the probability of acceptance.
  • After acceptance, all interim reports, specifications, etc., until the end of the project, we prepare sophisticated reports and as soon as new project opportunities arise, we inform you and design your projects together.

Get in touch with us now to build your projects together with success.

Corporate Tax Exemption

The earnings of corporate taxpayers operating in the territory that are solely from software, design, and R&D activities in this region are free from income and corporation tax until 31.12.2023, according to the temporary article 2 of Law No. 4691.

In order to qualify for the exemption, revenue from R&D activities that is derived from the sale, transfer, or leasing of intangible rights must be registered or registered by being linked to a patent or an analogous document within the parameters of the applicable legislation.

Additionally, the fraction equal to the proportion of eligible expenses incurred as part of operations intended to generate income for total expenses is eliminated.

It is clear that for R&D operations for those operating in technology development zones, exceptions rather than discounts are contemplated. As a result, money that is derived from R&D operations might be excluded from corporation tax.

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