Incentive Discount Transactions
The R & D incentive No. 5746 is one of the incentives introduced in our country which is in the process of European Union alignment negotiations. It is aimed to achieve a serious breakthrough in technology centers and design centers by supporting R & D efforts in order to spread innovative practices throughout the country. With this incentive, which has been in practice for a long time in our country, it is aimed to show an acceleration of technological developments.
The R & D incentive No. 5746, which took its current form after the last regulation in 2016, is a practice aimed at supporting the Centers engaged in research and development activities with various discounts in the context of taxes and premiums. Although this application is aimed at EU alignment, it can be considered among the applications that can become permanent with the advantages it actually brings. So which businesses and institutions are covered by this incentive?
Only R & D centres could benefit until 2016 under the R & D incentive No. 5746. However, the regulation aimed to expand the scope and spread the incentive to wider areas. In this sense, it is also possible to benefit the design centers. Of course, the enterprises and institutions that are considered within the scope of R & D incentives numbered 5746 are not limited to these. The technology center enterprises, public institutions and organizations or be constituted by the law of technology development project agreements in the context of international organizations or from public institutions and R & D projects supported by international funds or using credit funds or by the foundations in order to support R & D and innovation projects, pre-competition cooperation projects and techno venture capital support for beneficiaries of No. 5746, R & D subsidies are covered by.
Institutions and organizations entitled to benefit from R & D incentives numbered 5746 may benefit from corporate tax and income tax exemptions, income tax withholding incentives, SGK employer share support and stamp duty exemptions within the scope of incentives. The following can be stated if the mentioned exceptions are to be looked at in more detail;
R & D and design reductions: all of the R & D and innovation-based expenditures of the companies listed in the scope of R & D incentives numbered 5746; all of the expenditures realized in the design projects and centers of the corporate tax law numbered 5520 dated 03.03.2006 and 10. In accordance with Article 89 of the corporate earnings and Income Tax Law No. 193 of 31.12.1960. In accordance with the article, discount application is performed in determining the commercial gain.
Income Tax Withholding incentive: the number of personnel involved in innovation and design practices of companies within the scope of R & D incentive numbered 5746 and income tax withholding incentive is applied during the practices. While the incentive rate was 90% for pre-doctoral personnel, the incentive rate was increased by 5 points to 95% with the new application and the graduate personnel were included. In addition, it has been made easier for R & D personnel to include the parts that are not included in R & D during their working time. The training period of the personnel, especially those who are masters and doctoral students, is included in the scope of R & D studies.
Insurance Premium Support: 50% of the employer’s share in the insurance premiums to be paid by the rate of the personnel active in the R & D activities of the companies within the scope of R & D incentive No. 5746 has been exempted. In addition, all personnel in the enterprises covered by the Technology Development Zones Law No. 4691 are subject to this exemption.
Stamp duty exemption: the fact that the enterprises are covered by R & D incentive No. 5746 has ensured that they are exempt from stamp duty on all issued papers. The only requirement here is that the document relates to R & D and innovation activities.
Customs duty incentive: all goods and products imported for use in activities carried out within the scope of the incentive are exempted from customs duty and all kinds of funds. In addition to this, stamp duty and fees related to documents and other transactions related to import will not be taken.
Exception in R & D and design activities based on the order: the activities that enterprises will perform in R & D and design centers based on the order are subject to 50% support in the maintenance of incentives and exceptions within the scope of R & D incentive No. 5746. While the firm that actively performs the work has the right to benefit from all exceptions, the ordering party may benefit from the stamp duty reduction in addition to the R & D and design discount.
In the long term, the R & D incentive No. 5746 in the context of producing high added value products will provide serious breakthroughs. Especially with these incentives to produce substitutions of imported products, a two-sided win situation will arise.