Turkey: Venture Capital Investment Obligation Of Companies Operating In R&D And Technoparks

In the Official Gazette dated December 16, 2023, and numbered 32401, the Decision Annexed to the Presidential Decision dated December 15, 2023, and numbered 7953, was published, determining the amounts and rates specified in the fourteenth paragraph of Article 3 of Law No. 5746 on Support of Research and Development (R&D) and Design Activities and additional Article 3 of Law No. 4691 on Technology Development Zones, and the said decision shall be put into effect in accordance with the provisions of Law No. 5746 and Law No. 4691.

The obligation to allocate a fund and convert the allocated fund into investment applies to corporate income taxpayers benefiting from R&D tax deduction of 2,000,000 TRY and above in their annual declarations, as well as income and corporate income taxpayers with a tax exemption amount of 2,000,000 TRY and above on their annual returns in respect of Teknokent earnings.

According to the regulation:

Article 1

• The discount amount benefiting from the annual declaration in the fourteenth paragraph of Article 3 of Law No. 5746 dated February 28, 2008, which is 2,000,000 TRY and above, will be applied with a rate of three percent on this amount to be temporarily transferred to a liability account and the limit of the obligation to be transferred on an annual basis will be 100,000,000 TRY.
• The exemption amount on the annual declaration specified in additional Article 3 of Law No. 4691 dated June 26, 2001, which is 2,000,000 TRY and above, will be applied with a rate of three percent on this amount to be temporarily transferred to a liability account and the limit of the obligation to be transferred on an annual basis will be 100,000,000 TRY.

The provisions of the relevant law shall come into effect on January 1, 2024.

You can access the Official Gazette related to this matter here.