24.06.2021
R&D Deduction
Subparagraph (a) of the first paragraph of Article 10 of the Law No. 5520 regarding the R&D deduction application was repealed as of 9/8/2016 in accordance with the provision of Article 57 of the Law No. 6728.
With the 60th article of the Law No. 6728, Article 3/A was added to the Law No. 5746. In Article 3/A of the Law No. 5746, R&D discount is regulated for the R&D and innovation activities carried out by income and corporate taxpayers within their businesses. Accordingly, 100% of the amount of research and development expenditures made by income and corporate taxpayers, exclusively for the search for new technology and information, within their businesses, will be deducted in the determination of earnings, in accordance with Article 10 of Law No. 5520 and Article 89 of Law No. 193, provided that the projects within this scope are evaluated as R&D and innovation projects by the Ministry of Science, Industry and Technology of Republic of Turkey.
As of 9/8/2016, in the application of discounts regarding research and development projects for the search for new technology and information, which are the subject of applications made within the scope of Article 3/A of the Law No. 5746, the R&D discount will be utilized by taking into account the Law No. 5746 and related regulations. On the other hand, regarding the projects that are the subject of applications made within the framework of the regulations of this Communiqué before 9/8/2016, R&D discount will be used According to the provisions of subparagraph (a) of the first paragraph of Article 10 of the Corporate Tax Law before it was amended by Law No. 6728.
Source: Revenue Administration of Republic of Turkey – Translated by Karen Audit – The rights of this translation belong to KarenAudit and unauthorized use is prohibited.
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