The law numbered 6676 amending "Law on Supporting
Research and Development ("R&D")
Activities" was published in the Official Gazette
dated February 26, 2016 and entered into force as of March 1, 2016
("Amendment Law"). The purpose of the amendment is
to increase the investments made on R&D activities for the
production of higher value-added goods, as well as designing
activities by means of establishing collaboration between
universities and the industry. In this respect, special incentives
were introduced by Amendment Law, as listed below:
"Designing activities" are included to the
R&D incentives: Establishment of design centers will enjoy
similar incentives as the R&D centers and the technology
development zones ("TDZ"). Furthermore, documents
that are drafted in relation to designing activities will also
enjoy stamp tax exemption.
Income arising from the R&D, innovation and designing
activities will be exempt from income tax and corporate tax until
December 31st, 2023;
The government will support the firms engaged in R&D
activities by subsidizing the 50 % of the cost of the machinery and
equipment to be used in the R&D factories.
Goods delivered to and services rendered in TDZ, will be exempt
from Value Added Tax.
Goods imported for the R&D, innovation and designing
projects will enjoy customs tariff exemption as well.
The Ministry of Science, Industry and Technology is entitled to
determine on the maximum rent amount to be charged in the TDZs and
The minimum number of workers that the companies need to employ
for enjoying any R&D incentives has been decreased from 30
workers to 15 workers.
Total capital payment support to the employers in the TDZs has
been increased from TRY 100,000 to TRY 500,000 (USD 143,570), depending on the type of the
R&D project. The amount of this support will be deducted from
employers' corporate tax liabilities. Application period to
this support has been increased to 10 years from 5 years starting
from the founder's graduation from the university.
Academicians, who are employed to conduct projects under
university–industry cooperation programs, will be exempt from
income tax, which will be deducted from the income that they
receive from their collaborative works with the industry.
The Amendment Law also provides for granting scholarships to
the successful students by the Scientific and Technological
Research Council of Turkey (TUBITAK) in order to encourage them. Up
to 60% of the general expenses of the projects approved by TUBITAK
will be covered by the same.
It is expected that the Amendment Law will help to increase the
stake of R&D activities in the Turkish economy from 1% to 3% of
the country's total GDP in order to reach Turkey's 2023
targets. Foregoing incentives are quite
generous and seem to be able to persuade all the interested parties
to invest in the R&D activities.
Turkey has updated its project-based investment incentives scheme, providing financial support for innovative, technology-oriented, R&D focused, high value-added projects, which assist in reducing foreign dependency.
Turkey has amended expropriation requirements and procedures, tightening requirements for the contents of agreements for expropriated immovable property, while also expanding the scope of immovable property which is open to expropriation.
On 19 April 2016 the Bulgarian Council of Ministers published a draft for the new Concessions Act (the "Draft CA"), which will replace the current framework regulating concessions and PPPs in Bulgaria.
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