Turkey
Turkey allows company to take full tax deduction with their R&D expenses and investment.
Therefore, even loss-making companies can take benefit of this tax deduction by carrying forward their deductible R&D expenses as long as they need. If the process of applying is demanding, either by certifying entities and / or their projects, additional bonuses are likely to convince.
| Turkey all Companies
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|---|---|
| 100% R&D deduction from income tax → infinite carry forward in case of loss-making |
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| Benefit Overview
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The main feature of the Turkish scheme is a 100% corporate tax deduction for expenses incurred in R&D. Loss making companies can therefore carry forward indefinitely. With a reduced corporate income tax of 23% in 2022, it is a 23% benefit guaranteed for all companies, even if the scheme is not properly saying a superdeduction. The benefit for profit-making companies is therefore limited.
In addition, an income tax withholding incentive and a social security bonus complete the scheme amongst other features. |
| Eligible Claim Period
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Deduction for pre-approved R&D projects is processed with corporate tax return. |
| Historical Background
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For two decades, Turkey has invested in R&D tax incentives for economic development. It has ever since been continuously renewed and reshaped until its latest modification in 2021. |
| Ease of Application
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Pre-approval is compulsory from TUBITAK.
Certified design centres or R&D must be certified by a sworn-in certified public Accountant |
| Regulating Body Policies
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TUBITAK (Scientific and Technological Research Council of Turkey) |
| Eligible Costs | All costs incurred for the approved projects are eligible and can be carried forward. |
| Issues to Consider | Companies must obtain pre-approval from TUBITAK for projects or getting certified for applying to the scheme. Minimum R&D resources are requested to do so. |