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Turkey allows company to take full tax deduction with their R&D expenses and investment.
Therefore, even loss-making companies can take benefit of this tax deduction by carrying forward their deductible R&D expenses as long as they need. If the process of applying is demanding, either by certifying entities and / or their projects, additional bonuses are likely to convince.

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Turkey all Companies

100% R&D deduction from income tax
→ infinite carry forward in case of loss-making
Benefit Overview

The main feature of the Turkish scheme is a 100% corporate tax deduction for expenses incurred in R&D. Loss making companies can therefore carry forward indefinitely. With a reduced corporate income tax of 23% in 2022, it is a 23% benefit guaranteed for all companies, even if the scheme is not properly saying a superdeduction. The benefit for profit-making companies is therefore limited.

In addition, an income tax withholding incentive and a social security bonus complete the scheme amongst other features.

Eligible Claim Period

Deduction for pre-approved R&D projects is processed with corporate tax return.
Historical Background

For two decades, Turkey has invested in R&D tax incentives for economic development. It has ever since been continuously renewed and reshaped until its latest modification in 2021.
Ease of Application

Pre-approval is compulsory from TUBITAK.

Certified design centres or R&D must be certified by a sworn-in certified public Accountant

Regulating Body Policies

TUBITAK (Scientific and Technological Research Council of Turkey)
Eligible Costs All costs incurred for the approved projects are eligible and can be carried forward.
Issues to Consider Companies must obtain pre-approval from TUBITAK for projects or getting certified for applying to the scheme. Minimum R&D resources are requested to do so.