R&D Consultancy
Today, with increasing competition, companies have to invest in innovative products with high added value, design and brands in order to enter the market, become competitive or sustain competitiveness. In this direction, within the scope of the R&D and Technology Development Zones legislation, many incentives, grants and support are provided by our state in order to increase the competitiveness of our country in the international arena, to produce high value-added products and to reveal the investment potential. Capital companies with their legal or business headquarters in Turkey, including the workplaces of non-resident taxpayer institutions in Turkey, can establish a company or more than one R&D and/or Design Center and benefit from the incentive in question.

What is an R&D Center?
It is defined as a unit organized as a separate unit within the organizational structure of capital companies, including the workplaces of limited taxpayer corporations in Turkey, whose legal or business headquarters are located in Turkey, which is established to carry out R&D and innovation projects or R&D and innovation activities carried out on an order basis within the framework of a contract, and which is organized as a separate unit within the organizational structure, exclusively engaged in research and development activities in Turkey and employs at least 15* full-time equivalent R&D personnel and has sufficient R&D accumulation and capability.

At least 30 full-time equivalent R&D personnel must be employed in the following sectors.

29 – Manufacture of motor vehicles, trailers and semi-trailers
30.30 – Manufacture of aircraft and space vehicles and related machinery
30.40 – Manufacture of military combat vehicles
30.91 – Motorcycle manufacturing
30.99 – Manufacture of other transportation equipment not elsewhere classified

What is a Design Center?
The units that are established to carry out design projects or design activities carried out on an order basis within the framework of a contract and that are organized as a separate unit within the organizational structure of capital companies with their legal or business headquarters in Turkey, including the workplaces of non-resident taxpayer institutions in Turkey; organized as a separate unit within the organizational structure, exclusively engaged in domestic design activities and employing at least 10 full-time equivalent design personnel, with sufficient design accumulation and capability.

INCENTIVES PROVIDED TO R&D AND DESIGN CENTERS

✓ Additional R&D and Design Deduction in Determination of Taxable Income
Within the scope of Law No. 5746 on Supporting Research, Development and Design Activities, all (100%) of the R&D and innovation or design expenditures made in R&D/Design Centers can be deducted in determining the corporate income until 31/12/2023.

Performance Based Additional Deduction in Determination of Taxable Income

In R&D/Design centers that achieve at least a twenty percent increase in any of the following indicators compared to the previous year, 50 percent of the increase in R&D and innovation or design expenditures made that year compared to the previous year can be deducted in determining commercial income.

Share of R&D or design expenditures in total turnover,
Number of national or international patents registered,
Number of internationally supported projects,
Ratio of the number of researchers with postgraduate degrees to the total number of R&D personnel,
Ratio of total number of researchers to total number of R&D personnel,
Ratio of turnover generated from new products resulting from R&D to total turnover.

Revaluation Opportunity for Carried Forward R&D Deductions
Within the framework of Law No. 5746, the amount of R&D and design allowance that cannot be deducted in the relevant accounting period due to insufficient earnings is transferred to the following accounting periods. The transferred amounts are taken into account in the following years by increasing the revaluation rate determined every year according to the Tax Procedure Law No. 213 without any time limitation.

Acceptance of Order-Based R&D, Innovation and Design Activities as a Discount Element in Determination of Taxable Income

Income Tax Withholding Incentive for Personnel

Within the scope of Law No. 5746, 95% of the income tax calculated on the wages of R&D and support personnel working in R&D centers, excluding public personnel, in return for this work;

95% for those with a doctorate or at least a master’s degree in one of the basic sciences,
90% for those with a master’s degree or a bachelor’s degree in one of the basic sciences,
For the others, 80% of the tax deducted from the tax accrued on the withholding tax return to be submitted.

✓ Insurance Premium Employer Share Support

Within the framework of Law No. 5746, half of the employer’s share of the insurance premium calculated over the wages of R&D and support personnel working in R&D centers, excluding public personnel, in return for their work related to R&D and innovation activities, is covered by the Treasury from the appropriation to be placed in the budget of the Ministry of Finance.

✓ Basic Sciences Graduate Personnel Employment Support

For R&D centers that employ R&D personnel with at least a bachelor’s degree in basic sciences (mathematics, physics, chemistry, biology), a portion of the monthly salary paid to each of these personnel equal to the monthly gross amount of the minimum wage applied for that year will be covered for two years from the appropriation to be placed in the budget of the Ministry of Science, Industry and Technology.

Stamp Tax Exemption

Within the scope of Law No. 5746, all papers issued in relation to all kinds of R&D and innovation activities are exempt from stamp tax.

✓ Customs Duty Exemption

Goods imported for use in research related to R&D, innovation and design projects are exempt from customs duty and all kinds of funds, and the papers issued and transactions made within this scope are exempt from stamp duty and fees.

As GLOBALTR, the services we provide at the point of R&D consultancy are based on the principle of providing maximum tax savings and minimizing risks within the framework of legal regulations. In this context, we provide a wide range of services from R&D center applications to the final stage.

OUR SERVICES WE PROVIDE IN THE R&D CONSULTANCY PROCESS AS GLOBALTR

1. Our Services for the Application Process

Analysis of whether the minimum conditions for the formation of the R&D center can be met,
Determination of strategies for the R&D center,
Analyzing the incentives to be entitled to in case of obtaining R&D center status,
Consultancy on the R&D center application process
Providing support services for R&D center application documents and documents,
Criteria set out in the R&D legislation

2. Our Services for the R&D Implementation Period

Conducting periodic audits in line with the criteria determined within the framework of R&D legislation,
Supervision of the distribution of expenditures and costs related to R&D center projects to the relevant project accounts,
Control of the number of R&D center personnel in terms of the number of full-time and equivalent personnel,
Determination of the R&D allowance amount (for each temporary taxation period),
Providing consultancy on income tax withholding and insurance premium support,
Audit of the content and accounting of R&D expenditures,
Control of declarations and declarations related to R&D discounts and incentives,
As a result of the audits, reporting the issues identified regarding R&D practices and organizing meetings when necessary,
Establishment and control of an accounting and documentation infrastructure to ensure that R&D expenditures are separated from expenditures related to other activities and that financial incentive amounts are calculated correctly,
Supporting Companies during the audit process conducted by the Evaluation and Audit Commission,
Supporting the preparation of annual reports.