Tax Regulations Regarding Technopolis and R&D Centers

4.02.2021
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Through the Law No. 7263 on the Amendment to the Law on Technology Developments Zones and the Certain Laws (“Law No. 7263”), published in the Official Gazette dated February 3, 2021 and numbered 31384, significant tax regulations have been introduced to the Law No. 4691 on Technology Developments Zones (“Law No. 4691”) and the Law No. 5746 on Supporting Research, Development and Design Activities (“Law No. 5746”).

The mentioned tax regulations may be summarized as follows.

Amendments to the Law No. 4691

  • As of 01.01.2022, the income and corporate taxpayers in the Technology Development Zone, whose exempted profit based on tax return is TRY 1,000,000.00 and more shall transfer 2% of the exempted profit to a temporary account in liabilities to acquire the venture capital investment fund shares that are established to invest in entrepreneurs residing in Turkey, or to be capitalized in venture capital investments partnerships or entrepreneurs operating in business incubators under the Technopolis Law. The mentioned amount shall be utilized to invest in entrepreneurs until 31.12.2023.
  • The opportunity to make reduction of the capital support provided by income and corporate taxpayers to companies operating in the Technopolis, to be rendered in the financing of projects within the scope of the Technopolis Law, has been extended to 31.12.2028.

Amendments to the Law No. 5746

  • The capital support provided by income and corporate taxpayers to companies benefiting from the venture capital funds to which the resources within the scope of Venture Capital Support are transferred or the investments of the funds invested by these funds may be subject to a reduction in the determination of the business profits provided that certain conditions are met.
  • As of 01.01.2022, corporate taxpayers whose R&D reduction amount, subject to reduction over the annual tax return, is TRY 1,000,000.00 or more shall transfer 2% of the amount subject to reduction to a temporary account in liabilities to acquire the venture capital investment fund shares that are established to invest in entrepreneurs residing in Turkey, or to be capitalized in venture capital investments partnerships or entrepreneurs operating in business incubators under the Technopolis Law No. 4691.

The Law No. 7263 enters into force on the publication date. You may find the full text of the Law here.

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