R&D Center and Design Center Incentives

Even for companies not located within private investment zones, Ministry of Science, Industry and Technology provides R&D and Design Activities Tax Incentives in the scope of Research and Development Activities Incentives Law No: 5476, provided that the company employs at least 15 R&D employees or at least 10 design emloyees.

R&D Center and Design Center Incentives >

In the scope of “Research and Development Activities Incentive Applications and Audition Regulations” prepared under Law No: 5746, R&D and Innovation projects conducted by companies with R&D license can benefit from the following incentives;

 

  • R&D and Design Tax Discount: all R&D, design and Innovation expenses are subject to tax discount
  • Income Tax Withholding Incentive: for payments made to R&D, desing and support personnel in the scope of the project, 95% of income tax of employees with PhD degree or master degree from basic sciences, 90% of income tax of employees with master degree or licence degree from basic sciences, ,80% of income tax of other employees are exempted
  • Insurance premium incentive: Insurance premium incentive for R&D,desing and support personnel
  • Stamp Tax Exemption: Stamp tax for any valuable documents drawn up in the scope of R&D and desing activities is subject to exemption.
R&D Center and Design Center Areas Outside Private Investment Regions
R&D Tax Discount (For R&D and Design expenses) 100% -
Income Tax 80% - 95% exemption (95% of income tax of employees with PhD degree or master degree from basic sciences, 90% of income tax of employees with master degree or licende degree from basic scirnces, 80% of income tax of other employees are exempted)
 15% - 35%
Personnel Costs Social Security Contribution (employee share) 15% 15%
Social Security Contribution (employer share) 10,25% 20,5%
Unemployment Insurance Payments 2% - 3% 2% - 3%
Stamp Tax NO 0,5% - 0,1%