Law No. 5746 · Design Centre
Industrial design
transforms into a tax strategy.
Design centres accredited by the Ministry of Industry and Technology under Law No. 5746 benefit from an incentive package parallel to an R&D centre — from corporate tax deduction to income tax withholding support, from employer social security premiums to customs duty exemption. Properly managing the accreditation process unlocks all of these advantages.
Legal Basis
5746
Law on Supporting Research, Development and Design Activities
Core Eligibility Conditions
Scope and Approach
Design centre status is the mandatory prerequisite for fully benefiting from the incentive component that Law No. 5746 reserves specifically for design activities. Companies that employ a minimum of 10 full-time design personnel and establish a dedicated physical design area may apply to the Ministry for accreditation.
The financial advantages the law provides to design centres largely mirror those of an R&D centre. Design deduction, income tax withholding support, employer social security premium, stamp duty exemption, and customs duty exemption increase cumulatively as personnel costs and design expenditures grow.
Akbaş works alongside the company throughout all stages — from pre-eligibility analysis to preparation of the application file, from the Ministry's evaluation process to annual audit reports. Correctly defining design activities within the regulatory framework is decisive both for accreditation success and for subsequent annual audits.
Support Package
Parallel to an R&D centre,
design-specific incentives.
Design centre accreditation establishes a mechanism in which six independent incentive components operate simultaneously. They renew every tax period for as long as the centre remains in operation; as headcount and expenditure grow, savings increase linearly.
100% Design Deduction
All design expenditures within the centre's scope are deducted from the corporate tax base at 100%. As prototyping, modelling, and personnel costs grow, the tax advantage increases linearly.
Design personnel salaries, prototype materials, software (CAD, 3D), and design-specific overheads
50% additional deduction right for centres with 500 or more full-time design personnel
Expenditure must occur within the scope of design activities and be documentable
80–95% Income Tax Withholding Support
Income tax withholding on salaries of design and support personnel is applied at a reduced rate of 80% to 95% depending on level of education. Employing qualified designers becomes more sustainable.
Withholding support 95%; highest incentive rate
Withholding support 90%; critical for specialist designer staff
Withholding support 80%; applies to all personnel in the design centre
50% Employer Social Security Premium Support
Half of the employer's social security premium share for design and support personnel is covered by the Treasury. Even with a smaller team the saving is meaningful; as the team grows, the advantage compounds.
Design and support personnel; support headcount must not exceed 10% of design personnel
50% of the employer's social security premium share is covered by the Treasury
Monthly offset on the withholding tax declaration; no additional application required
Stamp Duty Exemption
Design contracts, procurement agreements, and employment contracts within the centre's scope are exempt from stamp duty.
Customs Duty Exemption
CAD workstations, 3D printers, and prototyping equipment imported for the centre are exempt from customs duty.
Patent and Trade Mark Incentive
50% of income earned from registered industrial designs and patents resulting from design activities is deducted from the corporate tax base.
Our Process
A corporate framework
for design activities.
Design centre accreditation requires documenting existing design activities in a regulation-compliant manner and placing them within a corporate framework. The more solid the preparation phase, the more smoothly the Ministry's evaluation is completed.
Pre-Eligibility and Activity Analysis
The company's existing design activities, personnel structure, and physical infrastructure are assessed against the Ministry's guidelines. Whether the 10-designer condition is met, whether the activities conducted fall within the regulatory scope, and the steps needed to address any gaps are clarified at this stage.
Design Centre Infrastructure and Personnel Structuring
The design centre is configured to meet the physical and organisational conditions required by the regulations. Personnel job descriptions, design area arrangement, and activity plan are prepared in line with the Ministry's guidelines; identified deficiencies are addressed before the application.
Preparation of the Application File
The application package to be submitted to the Ministry consists of the design centre introduction report, personnel documents, physical space documentation, and design project portfolio. Critically reviewing the file from the evaluator's perspective ensures that any weak or missing points are strengthened in advance.
Ministry Evaluation and Accreditation
The application is submitted to the Ministry of Industry and Technology. Throughout the evaluation process, including on-site inspection, Akbaş responds to queries and handles requests for additional documents. The process is actively followed until the accreditation decision is issued.
Annual Audit and Continuous Reporting
Accreditation does not close the process; it is renewed each year through a Ministry audit. Annual activity reports, design project updates, personnel notifications, and audit preparations are managed by Akbaş. The continuity of incentive rights depends on the completeness of this reporting.
Example Scenario
Incentive value
seen in numbers.
Annual financial advantage attainable under Law No. 5746 for an industrial products manufacturer with a 12-person design team and ₺10,000,000 in annual design expenditure.
Scenario Parameters
Annual Incentive Calculation
The calculation is based on a weighted average income tax rate of 20% and a weighted withholding support rate of 85%. Actual figures vary according to personnel's level of education and salary distribution. A corporate tax rate of 25% has been applied; for different rates and additional incentive scenarios, please submit an analysis request.
Frequently Asked Questions
Questions about
design centre accreditation.
Which design activities qualify under the law?
Under Law No. 5746, design activity covers creative work relating to the form, function, and appearance of a new or improved product aimed at creating added value and competitive advantage in the industrial sector. Industrial product design, prototype development, 3D modelling and simulation, and user research-based product improvement all fall within this scope. Purely aesthetic work, marketing, and advertising are excluded.
What is the fundamental difference between a design centre and an R&D centre?
Both centre types fall under the same law and provide parallel financial advantages. The key difference lies in activity content and minimum headcount: a design centre requires a minimum of 10 full-time designers, whereas an R&D centre requires 15. A design centre carries no obligation for scientific research or technical development; it is a more accessible accreditation type for companies focused on product design and prototyping.
Can prototype and sample costs be included in the design deduction?
Yes. Prototype development and sample production costs that form a natural part of the design process may be treated as design expenditure. It must be possible to document that the expenditure is directly related to the design activity. Costs attributable to products that have moved into serial production cannot be treated within this scope; this boundary is addressed specifically during the pre-analysis to ensure it is drawn correctly.
Can the same company establish both a design centre and an R&D centre?
Yes, the regulations permit both centre types to coexist within the same company. However, each centre's personnel list and area of activity must be defined independently of each other; the boundary between R&D activity and design activity must remain clear. Managing two centres simultaneously requires additional care in expenditure allocation processes and annual reporting; planning this complexity in advance is important.
How long does design centre accreditation take to complete?
Including the preparation of the complete application file and the Ministry's evaluation process, accreditation is typically completed within three to six months. Correctly defining and documenting design activities within the regulatory scope is the most critical factor determining this timeline. The pre-analysis is also decisive in terms of scheduling; Akbaş manages this process in a planned manner.
pre-assessment
Does your company meet the conditions for establishing a design centre?
Share your design team's size, activity content, and infrastructure status; let us calculate the eligibility analysis and potential incentive value together.
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