Incentives for Technoparks
Technoparks are areas designed to support R&D activities and attract investments in high-tech fields. The legal framework regarding the technoparks is set forth under Technology Development Zones Law No. 4691 (“Law”) and Regulation of Implementation of Technology Development Zones (“Regulation”). The Law and Regulation refer to the concept of technoparks as the technology development zones (“TDZs”). According to the Law, the companies located in technoparks can benefit from many tax incentives as below.
1. Income Tax and Corporate Tax Exemption
Income and corporate taxpayers who has obtained incomes exclusively thanks to the software, development and R&D activities conducted in TDZs are exempted from income tax and corporate tax for such incomes until 31.12.2028.
2. Tax Exemption for Wages
The wages of R&D, design and development personnel employed in TDZs are exempted from all taxes until 31.12.2028. The number of the support personnel benefiting from such exemption shall not exceed 10% of the number of R&D and design personnel.
3. Value Added Tax (VAT) Exemption
Within the period benefitted from income tax and corporate tax exemption, the delivery and services produced by entrepreneurs (defined as legal entities and natural persons who are willing to benefit or are currently benefiting from the services and incentives in TDZs) exclusively in TDZs in the form of system management, data management, business applications and sectoral, internet, mobile, and military command control application software are exempted from Value Added Tax (VAT).
4. Insurance Premium Incentive
Employers in TDZs solely pay 50% of the employer insurance premium share to SGK.
5. Investment Opportunities
Enterprises may make the investment, required for the production of the technological product obtained as a result of the R&D projects conducted in TDZs, if deemed suitable by the operator company (the company responsible for the management and operation of TDZs) and allowed by the Ministry of Science, Industry and Technology.
6. Customs Duties and Stamp Tax Exemption
Goods imported for using in research on software, R&D, innovation, design projects and relevant researches carried out within the scope of Law are exempted from customs duties and stamp tax.