Can I Claim Ar-Ge Giderleri (Research and Development Expenses) as a Business Expense in Turkey?
Yes — and exceptionally well. Turkey's R&D incentive regime allows a 100% deduction of qualifying R&D expenses from taxable income plus an additional 50% bonus deduction under Law No. 5746, giving an effective 150% deduction for qualifying spend. Companies in Technology Development Zones (Teknoloji Gelistirme Bolgeleri) additionally benefit from full Kurumlar Vergisi exemption on software/R&D income.
What GIB (Gelir Idaresi Baskanligi) says
Araştırma ve Geliştirme Faaliyetlerinin Desteklenmesi Hakkında Kanun No. 5746 (R&D Support Law). Gelir Vergisi Kanunu Article 40 (standard deductibility). Technology Development Zone Law No. 4691 (full tax exemptions for Teknoparklar).
When you can claim
- Qualifying R&D staff salaries in a dedicated R&D centre — 80% of qualifying R&D employees' income tax is refunded as an incentive (effectively the company's cost of employing R&D engineers is significantly subsidised)
- Materials, supplies, and consumables used in R&D projects — 100% deductible as Ar-Ge gideri
- Third-party contract R&D costs (commissioned research from universities or certified R&D centres)
- Depreciation on assets used exclusively for R&D activities
- Software income generated by companies resident in a Technology Development Zone — entirely exempt from Kurumlar Vergisi
- Patent registration and IP protection costs related to R&D outputs
When you cannot claim
- General product improvement or routine testing — must be genuinely novel research with technological uncertainty
- R&D outside a certified centre for the bonus 50% deduction — you still get standard deductibility but not the super-deduction
- Marketing or commercial activities bundled with R&D without clear separation
Good to know
Pro tip: Turkey's R&D incentives are among the most generous in the OECD. If you are a technology company, establishing your operations within a licensed Teknoloji Gelistirme Bolgesi (Technopark — e.g., ITU Technopark, ODTU Teknokent, Gebze TUBITAK Technology Park) can completely eliminate Kurumlar Vergisi on your software income and dramatically reduce Gelir Vergisi costs for R&D employees. The application process requires a project proposal and approval from TUBITAK or the relevant university.
Stop guessing what you can claim in Turkey
AccountsOS automatically categorises expenses with GIB (Gelir Idaresi Baskanligi)-aware rules and tells you exactly what is claimable.
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