With the published communiqué, in the 3rd article of the Law No. 5746 on Supporting Research, Development and Design Activities and in the temporary article 2 of the Technology Development Zones Law No. 4691, the income is earned during the periods spent outside the region with the R&D or design center made with the Law No. 7346 of 21.12.2021. The procedures and principles regarding the changes regarding the tax withholding incentive application have been regulated.
The explanations are as follows:
- Within the scope of income tax withholding incentive, the time spent outside these centers or regions will also be considered within the scope of income tax withholding incentive, provided that it does not exceed twenty percent of the total number of personnel working in R&D or design centers and technology development zones or the total working time subject to the incentive. The President is authorized to increase this rate, which was determined as twenty percent, up to seventy-five percent or to reduce it again to the legal rate in the regional and/or sectoral areas to be determined.
- With the President’s Decision dated 16.10.2021 and numbered 4625 published in the Official Gazette dated 17.10.2021 and numbered 31631, the personnel working in R&D or design centers and technology development zones, the third paragraph of the temporary article of the Law numbered 4691 and the third paragraph of the Law numbered 5746. It has been decided to apply the rate determined as twenty percent in terms of the time they spend outside the said regions and centers, to be applied to the total working hours included in the second paragraph of the article and subject to the income tax withholding incentive, as fifty percent until 31.12.2022.
- If the R&D, design or support personnel have spent half of their working time working in the center or the region and half working outside the center or the region during the periods when the fifty percent rate is valid, the entire wage paid to these personnel will be considered within the scope of the incentive.
Click here to access the General Communiqué No. 9 of the Law No. 5746 on Supporting Research, Development and Design Activities, which came into force as of 12.10.2021 and includes wide application examples.