Enterprises with projects focused on R&D, Design, and Software Development, as well as investors engaged in Technological Product Manufacturing, can benefit from the incentives mentioned.

Definition of Technology Development Zones (TDZs): TDZs are areas designed to support R&D activities and attract investments in high technology. These are areas where firms using high/advanced technology or focusing on new technologies utilize the facilities of a specific university or high-tech institute or R&D center/institute to produce/develop technology or software and transform a technological invention into a commercial product, method, or service. By doing so, they contribute to the development of the region, and these zones are often described as sites where academic, economic, and social structures integrate, or as techno-parks or technopolises with these characteristics, located within or near the same university, high-tech institute, or R&D center or institute.

Currently, there are 84 TDZs, 63 of which are operational, while the construction of the remaining 21 has been approved and is ongoing.

Incentives Provided to Ventures Located in TDZs Include:

• Tax Reduction in Determining Taxable Income
• Reduced Rent for Incubation Centers
• Income and Corporate Tax Exemption for Profits
• Tax and Duty Exemptions for Imported Goods
• Income Tax Withholding Exemption for Employees
• Support for Half of the Employer’s Share of Social Security Premiums
• Wage Support for Employing Personnel Holding at Least a Bachelor’s Degree in Basic Sciences
• VAT Exemption on Software Sales
• Tax Incentives for Venture Capital Investments
• Opportunities for Employment in TDZs for Public Institutions and Organizations as well as University Personnel
• Opportunities for University Lecturers to Establish, Participate, and/or Serve in Management Positions in Companies within TDZs
• Facilitation in Hiring Foreign Personnel
• Investment Permit for Technological Products

Exemptions for TDZs Include:

• Income and corporate taxes are exempted until December 31, 2023, for earnings from software development, R&D, and design activities.
• Sales of application software produced within the TDZ are exempt from VAT until December 31, 2023. This includes software used in system management, data management, business applications, various industries, internet, mobile phones, and military command control systems.
• Until December 31, 2023, the wages of R&D, design, and support personnel working in the region for their respective duties are exempt from all taxes. The number of support personnel within the exemption scope cannot exceed 10% of the R&D personnel.
• Investments necessary for the production of technological products resulting from R&D projects initiated and completed in the region can be made within the region, subject to the approval of the operating company and the Ministry of Industry and Technology.
• Until December 31, 2023, 50% of the employer’s share of SGK premiums will be covered by the state.
• Products imported within the scope of R&D, design, and software development projects are exempt from customs duties, and the documents to be issued are exempt from stamp duty.