In the dynamic landscape of technological advancement, Türkiye (formerly) Turkey has made significant strides through the establishment of Technology Development Zones, commonly known as "Technoparks". These zones represent a synergistic ecosystem where academia, research institutes, and industrial organizations converge with a singular aim: to elevate Türkiye's industry to a global competitive standard, focusing on innovation and export-oriented growth.
This article delves into the inception, operational dynamics, and multifaceted benefits of Technoparks, highlighting their role in fostering research and development (R&D), offering tax benefits, and creating a conducive environment for high-value-added technological innovation. From their legal framework to the practical steps for company establishment within these zones, the article provides a comprehensive overview of Technoparks, underscoring their pivotal role in Türkiye's technological and economic landscape.
What is a Technology Development Zone?
Technology Development Zones (commonly referred to as "Technoparks") are ecosystems where universities, research institutes, and industrial organizations come together with the aim of rendering the country's industry internationally competitive and geared toward exports.
Although the initial regulations regarding Technoparks have undergone significant changes over time, they were first introduced in Law No. 4691 dated 26.06.2001 ("Law"). The purpose of this Law is to facilitate collaborative efforts among companies established for R&D purposes, both among themselves and with academics and students within universities, thereby paving the way for the production of competitive and innovative products.
In order to achieve the goal of producing high-value-added R&D products in Technoparks, significant tax benefits have been provided to businesses established in these zones, while certain obligations have been imposed for the accommodation of companies solely engaged in R&D activities.
How to Establish a Company in Technoparks?
The first step to benefit from the advantages -as will be explained in more detail below- offered by Technoparks is to contact a Technopark that has available space for rent. Due to the high demand for Technoparks, some may not have available space, or the limited space available may not be suitable for the applicant.
Once the desired Technopark has been identified, it is essential to prepare a special project to apply and submit this project to the Technopark through a preliminary application. The crucial aspect here is the evaluation of whether the prepared project aligns with Technopark's objectives. Technoparks' scrutiny of this project aims to ensure that companies engaged in genuine R&D activities operate among the intense demand generated by companies related to the advantages provided.
After Technopark approves the project, an existing company needs to relocate to the designated Technopark area or establish a company directly within the Technopark area. With this characteristic, it bears similarity to company establishment in a free zone. Please feel free to contact us for further details on the establishment of a company in a free zone in Türkiye.
Tax and Social Security Contributions Support in Technology Development Zones
Companies located in Türkiye's Technoparks reduce their costs by benefiting from significant tax and social security contribution incentives. The primary incentives that enable cost reduction are as follows:
Support for Company Employees' Salaries
For companies in Technology Development Zones employing R&D personnel with at least an undergraduate degree in basic sciences, two years of the gross monthly salary paid to each of these employees, up to the monthly gross amount of the minimum wage applied for that year, is covered from the allocation in the budget of the Ministry of Industry and Technology. However, the support to be provided to each Technopark company within this scope cannot exceed ten percent of the total number of employees employed in that zone for the relevant month.
Customs Duty and Fee Exemption
Goods imported for research conducted within the scope of software, R&D, innovation, and design projects under the Law are exempt from customs duties, stamp duties, and all types of fees.
Income/Corporate Tax Exemptions
Enterprises in Technoparks do not pay income/corporate tax until 31/12/2028 for the profits they generate from the products they develop within the scope of the R&D project submitted to Technopark management.
Tax Exemption on Salaries
The salaries related to the activities of R&D, design, and support personnel employed in the region are exempt from all kinds of taxes until 31/12/2028. The number of support staff benefiting from such exemptions can't exceed ten percent of the number of R&D and design personnel.
Value-Added Tax Exemption For Certain Products
According to the temporary 20th article of the Value Added Tax Law, during the period when the income or corporate tax of entrepreneurs operating in Technoparks is exempt, the delivery and services provided exclusively in these areas by entrepreneurs producing in these areas in line with the Law, in the form of system management, data management, business applications, sectoral, internet, gaming, mobile, and military command control application software, are exempt from value-added tax.
Conclusion
There are currently more than 70 Technopark zones operating across the entire country, and this number continues to grow. These areas provide a collaborative and conducive environment for businesses operating within them to contribute to the national economy and offer significant tax advantages. In return, these Technopark zones expect the production of competitive technologies with high-added value. Therefore, only companies with projects capable of producing these mentioned products are admitted to Technoparks.
In this regard, it is crucial for aspiring entrepreneurs interested in operating within Technoparks to apply innovative projects to the Technopark management suitable for them. However, it's important to remember that the project scrutiny conducted by Technoparks continues during the company's tenure within the Technopark.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
