Untitled design 4 3 8

Technology Development Zones in Turkey 2023

Technology Development Zones in Turkey offer many great advantages and incentives to startups and technology companies.

This article will discuss the most famous incentives in Technology Development Zones in Turkey and the laws that regulate them.

Technology Development Zones

What are Technology Development Zones?

According to the International Association of Science Parks (IASP), a technopark aims to promote the establishment and growth of companies based on knowledge and advanced technologies that are formally or operationally affiliated with one or more universities or other higher education institutions and research centers .

In the early 1980s, the idea of ​​establishing a Turkish technological development zone emerged and construction began. Many studies have been conducted since then. TEKMER (Technology Centers) were built in the 1990s within the scope of KOSGEB’s cooperation with universities.

As of 01.03.2023, there are currently  97 technology development zones in Turkey, with 82 active ones . Construction and establishment works continue in the remaining 15 regions. There are Technoparks in 59 provinces in Turkey.

So far, 1,597 patents have been registered in the Technology Development Zones and there are currently 3,293 patent applications.

Who Can Work in Technology Development Zones

Technology Development Zones are good places for businesses to conduct new research and development. Companies that move their R&D units to TDZs are also good places for businesses to conduct new research and development.

Companies that want to develop new software or new technologies using university, Advanced Technology Institute or Public R&D Center facilities are also suitable for Turkey Technology Development Zones.

TEKMER’s businesses and new businesses with commercially viable ideas can grow and develop in technoparks in Turkey.

What are the Advantages of Being in a Technopark?

There are many advantages and incentives you can get while taking part in the Technopark.

  • Corporate tax exemption for companies and entrepreneurs
  • Income tax exemption for R&D, design and software personnel
  • Support for basic sciences graduates
  • VAT exemption (for software)
  • Insurance employer premium support
  • Income tax exemption for support staff
  • Customs duty exemption
  • Out-of-region work permit
  • Technological product investment permit support

There are two important laws regulating incentive, support and investment opportunities in Technology Development Zones:

What are the benefits of the Technology Development Zones Law No. 4691?

The purpose of this law is to produce technological knowledge, develop product and manufacturing innovations, increase product quality or standards, efficiency and reduce production costs in order to ensure that the country’s industry is internationally competitive and export-oriented.

The decisions of the Supreme Council of Science and Technology provide investment opportunities in areas with high technology intensity, job opportunities for researchers and experts in their fields, and help create a technological infrastructure that will accelerate the transition.

Technology Development Zones Law No. 4691 has many benefits for those new to Technology Development Zones, university and public employees who want to work in the region, regional management companies and many others.

Benefits for businesses operating in the Technology Development Zone include:

  • Income and corporate taxpayers who earn income from software and R&D activities will not be taxed until the end of 2028.
  • Until the end of 2028, researchers, software developers and R&D professionals working in the region will not have to pay taxes on their income.
  • Customs Duty Exemption : Companies conducting research on software, R&D, innovation and design projects located in R&D and Design Centers and Technology Development Zones within the scope of Law No. 4691 can avoid paying customs duty.
  • Insurance premium support : Until December 31, 2028, R&D and support workers receive exemption equal to half of the employer’s share of insurance premium, and VAT exemption for software made in the field until the end of 2019 .
  • They have the right to work full or part time with the permission of the institutions they work for.
  • In order to earn money from their research, faculty members will be able to start their own business, become a partner in an existing business and/or help run these businesses.

Technology Development Zones Law No. 5746

Law No. 5746 is a very important law that regulates supporting research and development activities.

R&D Discounts

Since 100% of your R&D-related expenses will be tax deductible, you can get a tax deduction for your R&D expenses. This is called “Corporate Tax Base”.

Transferring the R&D Deduction to a New Company

If the R&D company does not make money, discount rights do not disappear. The next LDO (revaluation rate) has also been increased.

Income Tax Withholding Incentive

It is an incentive not for public employees, but for foundations or international funds that use money or loans to assist research and development projects of international organizations or public institutions and organizations in technology center enterprises, R&D centers.

Tax incentives are provided within the scope of technology development project agreements established by law with public institutions and organizations.

This law applies to those working in R&D and innovation projects financed or carried out by TÜBİTAK, and those working in design projects and design centers financed by the same institutions or organizations. 

For people with a master’s or bachelor’s degree in a basic science, 90% of their income is not taxed. For other people, 80% is not taxed.

Insurance Premium Support (Employer Share)

Up to 10% of the R&D employees working on R&D projects and included in this list will be covered by the Treasury until 2023. Half of the employer’s share of insurance premiums for support workers is covered by the Treasury.

Stamp Duty Exemption

Stamp duty does not have to be paid for papers related to all kinds of R&D and innovation activities within the scope of Law No. 5746.

Decree Law No. 5746

  • Capital supports are not taken into account when calculating taxes.
  • Money given in the form of grants is kept in a separate account and is not considered taxable income. It can only be used to make money in the last five years.
  • R&D deduction amount that cannot be taken during the period due to low earnings; According to Law No. 5746, it is increased based on the revaluation rate and carried to the next period.
  • Research and development expenses are deposited into a savings account and amortized over time. If the project is not finished or does not work out, the money put into it is immediately deleted.
  • The amount spent for R&D center consultancy services and other R&D service purchases cannot exceed 20% of the total amount spent for R&D and innovation.

Turkey’s Most Famous Technology Development Zones

Related Articles:

  1. Turkey Technology Development Zones Law No. 4691
  2. Free zones in Turkey .. Locations, Taxes and benefits 2023
  3. Turkish Ministry of Industry and Technology 2023
  4. Shopify Turkey .. … How to open an online store in Turkey 2023
Abdullah Habib
Abdullah Habib

Merhaba! I'm Abdullah Habib. In this article, I share the essence of my 7-year journey in Turkey - as an expat and foreign student. With a heart full of stories and a mind rich with insights from my experiences, I've written this piece just for you. So, without further ado, sit back, relax, and enjoy the read!

Articles: 3639

Related Posts