R&D Incentives

R&D Law

R&D Law provides special incentives for the R&D and design projects to be conducted in Turkey if the R&D centres employ at least 15 staff and the design centres employ at least 10 staff. The number of personnel is determined by the Council of Ministers as 30 for the manufacture of motor vehicles, the manufacture of aircraft and space vehicles and machinery for them, and the manufacture of military warplanes. The incentives under the new law will remain in force until 2024 and include;

  • Reduction of all the R & D expenditures (100%) from tax assessment.
  • Deduction of the half of the difference in R&D and design expenditures over the previous year (The criteria will be determined by the Council of Ministers)
  • Income tax withholding incentive for the employees (until 31 December 2023)
  • 50% exemption on the Social Security Premium Employers’ Share (until 31 December 2023)
  • Stamp duty exemption for the documents to be issued
  • Customs duty exemption for the products imported within the scope of the R&D projects
  • Venture capital support up to TL 500,000 for the new scientists
  • The deduction of certain funds donated by public institutions and international organizations from tax assessments.

Supports on Technology Development Zones (TDZ)

The Advantages of the TDZs are;

  • The profits from software development, R&D and design activities will be exempt from income and corporate tax until 31 December 2023.
  • The sales of the application software exclusively produced in TGBs will be exempt from VAT until 31 December 2023. These apps should be on system management, data management, business practices, internet, mobile phones, military command and control systems and so on.
  • The salaries paid to R&D, design and support personnel working in the TDZ will be exempt from all taxes until 31 December 2023. The number of support personnel covered by the exemption cannot exceed 10% of the number of R&D personnel.
  • Investments required for the production of technological products developed through R&D projects can be realized in TDZs in case it is permitted by the Ministry and approved by the operating company.
  • The half of the Social Security Premium Employer's share will be paid by the government until 31 December 2023.
  • The documents to be issued within the scope of R&D, design and software development projects will utilize stamp duty exemption as well as the imported goods will be exempt from the customs duty.

Industrial Thesis Support Program (SANTEZ)

The SANTEZ Program is designed to increase the institutionalization of university-industry cooperation, to develop a new product and/or production methods that will create added value and contribute to increase the our country’s competitiveness in international markets and to make innovation in the current product and/or production methods in line with the requirements of the industry. The terms for the direct financial support provided under this program are as follows:

  • Up to 85% of the project budget can be directly supported as the grant.
  • The project is limited by two-years-period but this period can be extended for 6 months.
  • Personnel, travel, consumables, machinery and equipment, consultancy and related service procurements, transportation, insurance and customs expenses are supported as part of the project.
  • The project audit committee works independently and an application can be approved within 4 months.

TUBITAK Supports

TUBITAK (The Scientific and Technological Research Council of Turkey) supports R&D projects either by covering the related expenses or by allocating credits for the initial capital. The topics that can benefit from this support are as follows:

  • Concept development
  • Technological researches and technical feasibility researches
  • Laboratory studies to transform the concept into design
  • Design and draft works
  • Prototype production
  • Construction of pilot plants
  • Test/trial production
  • Patent and licence works
  • Activities related to the elimination of after-sales problems due to product design

KOSGEB Supports

Small and Medium Industry Development Organization (KOSGEB) has been established in order to increase the share and efficiency, to enhance the competitiveness and to realize the integration of the small and medium-sized enterprises so as to meet the economic and social needs of the country.

KOSGEB's support to R&D is as follows:

1-R&D and Innovation Support Program
2-Industrial Application Support Program
3-SME TECHNOINVESTMENT - SME Technological Product Investment Support Program
4-Strategic Product Support Program

For more detailed information, please visit https://www.kosgeb.gov.tr/site/tr/genel/destekler/3/destekler

TTGV Credits

Technology Development Foundation of Turkey (TTGV) provides long term interest-free loans for R&D projects aimed at improving agricultural technologies, health technologies, educational technologies and energy efficiency.

Loans are intended to provide financial support to the activities aimed at the development of new products with a commercial value in the mentioned technological areas or to increase the competitiveness of existing products in these areas. The scope of the program is as follows:

The duration of the support is at least 1 year and maximum 3 years
The upper limit for the amount of support is US $ 3 million whereas the lower limit is US $ 250,000.
The support is provided as the 50% of the project budget from TTGV and 50% from the beneficiary.
The project payback period is 4 years with a one-year grace period after the commencement of the project.

For more detailed information, please visit https://www.ttgv.org.tr/tr