Answer ... There is no specific legislation on the protection of fintech innovations.
Software is considered an artistic work under Law 5846 on Intellectual and Artistic Works. Software is therefore subject to copyright, but not to patents. Copyright in a work developed by a group of people is held by the legal entity which employs them or of which they are partners.
Answer ... As per the Eleventh Development Plan prepared by the President’s Strategy and Budget Department, as published in the Official Gazette:
- an efficient competitive landscape among financial entities must be ensured;
- the transactional costs of financial entities will be reduced and access to verifiable information will be eased;
- the development of alternative money and payment systems will be promoted;
- a secure fintech ecosystem, which provides for equality of opportunity, will be supported by learning from good international examples;
- the Istanbul Finance and Technology Base will be established;
- relevant legislation will be aligned with the Second Payment Services Directive for the purposes of promoting open banking; and
- a number of other promotions, encouragements and investments regarding the development of fintech will be implemented.
Also, although it is not fintech specific, the following legal framework incentivises fintech innovation in Turkey:
- Law 4691 on Technology Development Zones: This allows fintech companies located in technology parks to benefit from tax and social security payment discounts or exemptions.
- The Regulation on Individual Participation Capital: This regulates the angel investment and entrepreneurship ecosystem. Accordingly, 75% of the value of participation shares in fintech companies established under Turkish law that are held by business angels or individual investors can be deducted from the individual investor or business angel’s income tax base for the next tax year.
- The Decision on State Aid for Investments: This sets out three different investment incentivisation regimes: general, regional and strategic. In broad terms, these provide for certain exemptions and deductions of taxes (eg, value added tax, customs tax) and levies arising from labour and social security laws, and may provide for the allocation of property.
Turkey has no regulatory sandbox to test innovative fintech technologies.