TEKNOPARKS in Turkiye

This newsletter has been prepared for those who want to run their business in Turkish Teknopark Zones which allows some privileges to companies operating in software fields.

Teknopark, also known as Teknokent, is a model that emerged with Silicon Valley, which was established first in the United States in the 1950s.

Teknopark or Teknokent is the zone rented to companies that will carry out research and development in areas created by universities, and it is supported by regulations that encourage the growth of companies; It is a region consisting of buildings for commercial scientific or industrial research.

Teknoparks generally have a centralized management structure. Typically, institutions and companies in the zones are focused on product development and innovation. In contrast, industrial estates are concentrated on manufacturing, while Teknoparks concentrate on software development and technology functions. Technoparks constitute the infrastructure of the “Knowledge Economy” on a global scale; It enables universities and private enterprises to act together in the commercialization of innovation and technology.

In addition to providing land for companies, these Teknoparks offer some common resources: uninterrupted electricity, telecommunications switchboards, reception and security services, administration offices, restaurants, bank branches, meeting centers, parking lots, public transport, entertainment, and sports facilities. In this respect, parks are more advantageous than rental venues because they allow sharing the costs of these services as well as their taxation advantages.

In accordance with the Technology Development Zones Law No. 4691 and the Implementation Regulation, the following exemptions and exceptions are applied to entrepreneurs/companies engaged in research and development, software and design development activities at Teknoparks:

Income and Corporate Tax Exemption for Companies and Entrepreneurs

The earnings of the companies within the scope of this Law application and the income and corporate taxpayers operating in the Region exclusively from software and R&D activities are exempt from income and corporate tax until 31/12/2028.

Income Tax Exemption for R&D Employees

The wages of the R&D employees working in the region related to these duties are exempt from income and all kinds of taxes until 31/12/2028 too.

 VAT Exemption

System management, data management, sectoral, internet, mobile and military command and control application software produced exclusively in these zones are exempt from value-added tax until 31/12/2028.

Social Security Insurance Premium Support

Pursuant to Article 3 of Law No. 5746 on Supporting Research and Development Activities, the employees working in companies operating in Technology Development Zones within the scope of Law No. 4691 and whose wages are exempt from income tax; Half of the employer’s share of the insurance premium calculated over the wages they receive in return for their work is covered by the Turkish Republic Ministry of Treasury and Finance for each employee for a period of 5 (five) years.

Customs Duty Exemption

Goods imported to be used in research related to software, R&D, innovation and design projects carried out within the scope of the Law in the Regions, customs duty and all kinds of funds, documents and transactions made within this scope are exempt from stamp duty and fee.

Support Provided to Faculty Lecturers

Public institutions and organizations and university members whose services are needed as researchers and administrative personnel in the activities in the zones can be employed on a permanent or part-time basis with the permission of the institutions they work for. The incomes of part-time lecturers, lecturers, research assistants and experts for these services are excluded from the scope of university revolving fund.

Out of Zones Work Permit

In accordance with the Law No. 4691 in cases where it is necessary to carry out some of the activities within the scope of the project outside the zones can be carried out of the zones. The fees for these activities outside the Region shall not exceed one hundred percent, to be determined separately or jointly by the Council of Ministers.

Investment Support

Entrepreneurs/companies are able to benefit from existing R&D offices, as well as engage in software development and R&D activities by constructing buildings on the lands allocated to them for a certain period of time.

Convenience of Foreign Employment

Within the framework of the Law No. 4875, the Law No. 4817 of 27/2/2003 on Work Permits of Foreigners and the relevant legislation, foreign national managers and qualified R&D personnel can be employed in the zones without having to stick to the five Turkish employees to one foreign employee rule.

Encouraging Foreign Investors

Foreign private legal entities may participate in the managing company within the framework of the Foreign Direct Investment Law No. 4875 dated 5/6/2003 and the relevant legislation. In addition, foreign investors can carry out their R&D, Software and Design activities in the Region within the scope of the laws numbered 4691, 6170 and 6676.

Fundamental Sciences Support

According to Article 35/A of the Technology Development Zones Implementation Regulation No. 4691, the monthly gross amount of the minimum wage applied for that year to each of these employees by the companies that employ R&D personnel with at least a bachelor’s degree in the fields of basic sciences, shall be paid by the Ministry for a period of two years.

This support is also applied to R&D personnel who are graduates of basic sciences employed in the management companies of Technology Development Zones.

• In order to benefit from this support, it is essential that the personnel to be employed are recruited after 1/7/2017 (inclusive) and employed for the first time in the relevant Technology Development Zone.

• Technology Development Zone management companies are obliged to notify the Ministry in writing or electronically about the employment and resignation of the personnel employed within the scope of this support.

• Businesses that will benefit from this support notify their demands to the authorized institution. The institution evaluates whether the request is appropriate. In this context, the regional manager company submits the application it deems relevant to the Ministry through the portal and the Ministry evaluates the application.

• Payments to be made regarding this support are made monthly by the Ministry, taking into account the number of days of insurance premium for the employees within the scope of the support.

• In order to be able to make payments within the scope of this support, a report showing that the above conditions are met and that the period wages are paid by the company to the relevant employees must be submitted to the Ministry. The amount approved by the Ministry is paid to the bank account notified by the company until the end of the month following the delivery date of the report.

• The minimum information required and other relevant issues to be included in the report to be prepared within the scope of this support are determined by the Ministry.

Embark on a journey of growth and innovation by capitalizing on the opportunities Teknoparks offer. Contact Bayraktar Attorneys today and let us guide you through the path to success in Turkey’s technology landscape. Your thriving business starts here.