Law Amending Laws and Statutory Decrees For The Development of Industry and Support of Production ("Law") has been published in the Official Gazette dated 1 July 2017 and numbered 30111. The Law overhauls wide range of laws and regulations relating to the industrial production as well as research and development activities in Turkey.

As part of the incentives provided, the Law added a new provision to the Law on Technology Development Zones (known as "Technopark Law")1. According to Article 63 of the Law, the Ministry of Science, Industry and Technology ("Ministry") for a period of two years will cover the monthly salaries of research and development ("R&D") personnel employed by the companies operating in the Technology Development Zones -up to the gross monthly minimum wage amount provided that they hold at least an undergraduate degree in the fields of basic sciences i.e. mathematics, physics, chemistry and biology. However, in this scope, the support provided to each Technology Development Zone company will not exceed 10% of the total number of personnel employed in that company for the related month. This support is also applied to R&D personnel graduated from the basic sciences employed in the Technopark administration companies.

In addition, the Law introduced a new provision to the Provisional Article 2 of the Technopark Law and The Council of Ministers is authorized to provide tax exemptions for the earnings derived from the sale, transfer or lease of intangible rights, if necessary subject them to registration or documentation requirement, limit them with the ratio of the qualified expenditures to total expenditures and implement them with a 30 per cent increase. The Ministry of Finance and the Ministry of Science, Industry and Technology are authorized to determine the procedures and principles relating to the implementation of this incentive.

List of Other Incentives Already Provided to Those Operating in Technoparks in Turkey

The Technopark Law already includes a long list of incentives which can be summarized as follows:

  • State support: Monetary support will be provided by the Ministry in the event that the administration company of a Technology Development Zone fails to cover the costs in relation to
  • incubation programs to be conducted or carried out by the Technopark administration company in order to support R&D, innovation and design activities
  • technology transfer office services and technology cooperation programs and
  • construction of Technopark infrastructure, administration building and incubation centers.
  • Production at Technopark: If the Technopark administration company finds it suitable and the Ministry so permits, the technological product that have been researched and developed within the Technopark area can also be produced within the Technopark zone and benefit from the incentives provided for the production.
  • Tax Exemptions: Startup companies will be exempt from (i) stamp tax duties and other fees for the documents prepared in relation to the implementation of the Technopark Law, (ii) real estate tax for the properties owned within the Zone, (iii) custom duties, stamp tax duties and any other fees for the properties imported to be used in the R&D, innovation and design projects, (iv) income and corporate tax exemption until 31 December 2023 for the revenues earned from the R&D, software development and design activities conducted solely within the Technopark zone.
  • Exemptions from Employee Income Tax Withholding and Insurance Premiums: Salaries of the R&D, design and support personnel working in the Technopark zone will be exempt from all kinds of tax and duties until 31 December 2023. The number of support personnel who will benefit from income tax withholding and incentives related to the insurance premium employer's share shall not exceed 10 per cent of the total number of R&D and design personnel.

Footnote

1 Law on Technology Development Zones published in the Official Gazette dated 26 June 2001 and numbered 4691

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