R&D and Design Center

These are units that are established to perform R&D and innovation projects or order-based R&D and innovation activities, and especially carry out research and development activities domestically and employ at least 15 full-time equivalent R&D personnel and have sufficient R&D accumulation and ability; organized as a separate unit within the organizational structure of the capital companies that either their legal or business center is in Turkey including limited taxpayer institutions’ workplaces in Turkey.

The Design Center is a unit that is organized as a separate unit within the organizational structure of an enterprise and located in the same building or the same campus; especially engaged in domestic design activities and employs at least 10 full-time equivalent design personnel and has sufficient design knowledge and ability.

• Employing at least 15 full-time equivalent R&D personnel in R&D centers,
• Carrying out of R&D activities domestically,
• The applicant enterprise must have adequate R&D management and technological assets, R&D human resources, intellectual rights, project and information resources management skills and capacity,
• Having the mechanisms to make physical control of the R&D personnel’s actual working in the R&D center,
• The presence of R&D and innovation projects whose subject, duration, budget and personnel needs are defined in R&D centers,
• Organization of R&D Centers as a separate unit and being located in a single campus or physical location.

1. R&D Discount: 100% discount of the expenditures made within the scope of the project activities carried out in R&D Centers from the Corporate Tax base,
2. Income tax withholding incentive: for the R&D staff working within the R&D Center; certain rates of the wages earned in return for these works are exempt from income tax.
   • 95% exemption for employees with a doctorate degree in any field or a master’s degree in Basic Sciences.
   • 90% exemption for employees with a master’s degree in any field or a bachelor’s degree in Basic Sciences.
   • 80% exemption for other employees.
3. Insurance premium support: 50% of the insurance premium employer’s share calculated over the wages earned by the staff of the R&D Center for their work is covered by the incentive.
4. Stamp tax exemption: 100% of the stamp tax of the papers issued for all kinds of R&D and innovation activities within the scope of the Law for R&D Centers is within the scope of the incentive.
5. Customs Tax Exemption: Imported goods to be used in researches related to R&D, and innovation projects carried out in the R&D Center; are exempt from customs tax and all kinds of funds, and also, papers and transactions made within this scope are exempt from stamp tax and duties.
6. Basic Sciences Support: For R&D centers that employ R&D personnel with a minimum bachelor’s degree in Basic Sciences, part of the monthly salary paid each of these personnel that is equal to the gross amount of prevalent monthly minimum wage shall be covered by the appropriation to be included in the Ministry’s budget for a period of two years excluding public personnel.

R&D centers that employ R&D personnel with a minimum bachelor’s degree in Basic Sciences, part of the monthly salary paid each of these personnel that is equal to the gross amount of prevalent monthly minimum wage shall be covered by the appropriation that will be included to Ministry of Science, Industry and Technology budget for a total period of two years.

It refers to the personnel in R&D Centers taking part in R&D activities or directly related to such activities, e.g. manager, technical personnel, laboratory assistant, secretary, worker or similar personnel. The number of support personnel cannot exceed 10% of the number of fte R&D center personnel.

FTE: It means full time equivalent. The number of full-time equivalent R&D or design personnel working in the R&D or design center is calculated as dividing the total working period, as per quarters, of the personnel working in the center by a person’s three-month full-time working period. Working time over 45 hours a week and additional working hours are not taken into account in this calculation. Quarterly periods are the temporary taxation periods of the company that includes the R&D or design center.

It is a project that its purpose, scope, general and technical definition, duration, budget, special conditions, the amount of in-kind and/or cash support to be provided by other institutions, organizations, real and legal persons and the sharing principles of the resulting intellectual property rights have been determined and carried out by the researcher according to scientific principles and in a way to determine every stage of R&D activities.