Law No. 5746 · R&D Centre
The tax power of an R&D centre
begins with accreditation.
R&D centres accredited by the Ministry of Industry and Technology under Law No. 5746 benefit from a comprehensive incentive package — from corporate tax deduction to income tax withholding support, from employer social security premiums to customs duty exemption. Accreditation must be structured correctly before the process begins.
Legal Basis
5746
Law on Supporting Research, Development and Design Activities
Core Eligibility Conditions
Scope and Approach
R&D centre status is the mandatory prerequisite for benefiting at full capacity from all of the incentive components offered by Law No. 5746. Industrial companies that employ a minimum of 15 full-time R&D personnel and establish a dedicated physical space may apply to the Ministry for accreditation.
The advantages conferred by centre status are not one-time; they deliver a financial package that renews every year and grows cumulatively. When personnel costs, R&D expenditure, and external technology acquisitions are evaluated together, the true value of accreditation becomes apparent.
Akbaş acts as the company's strategic advisor throughout all stages — from pre-eligibility analysis to preparation of the application file, from the Ministry's evaluation process to annual audit reports. Every file is structured with an original analysis; no template applications are submitted.
Support Package
Three core supports,
an advantage that renews annually.
R&D 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% R&D Deduction
All R&D expenditures within the centre's scope are deducted from the corporate tax base at 100%. As expenditure grows, the tax advantage grows directly; this component typically carries the highest value in the package.
Personnel salaries, materials, software, outsourced services, and centre-specific overheads
50% additional deduction right for centres with 500 or more full-time R&D personnel
Expenditure must be of R&D nature, documentable, and incurred within the centre's boundaries
80–95% Income Tax Withholding Support
Income tax withholding on salaries of R&D and support personnel is applied at a reduced rate of 80% to 95% depending on level of education. The cost of qualified personnel decreases; retaining a competent team becomes easier.
Withholding support 95%; highest incentive rate
Withholding support 90%; critical for engineering staff
Withholding support 80%; applies to all R&D-qualified employees
50% Employer Social Security Premium Support
Half of the employer's social security premium share for R&D and support personnel is covered by the Treasury. As the team grows, savings increase linearly; for a team of 20, the annual saving can reach millions.
R&D and support personnel; support headcount must not exceed 10% of R&D 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
Project contracts, procurement agreements, and employment contracts within the centre's scope are exempt from stamp duty.
Customs Duty Exemption
Machinery, equipment, and software imported for the centre are exempt from customs duty; foreign-sourced technology investments are converted directly into a cost advantage.
Patent Incentive Support
50% of income earned from patents registered as a result of R&D activities is additionally deducted from the corporate tax base.
Our Process
From pre-eligibility analysis
to annual audit.
R&D centre accreditation goes far beyond filling out forms. The Ministry's evaluation covers the entirety of the infrastructure, staffing, and activity content. The more robust the preparation, the faster the accreditation is completed.
Pre-Eligibility and Feasibility Analysis
The company's current personnel structure, activity content, and physical infrastructure are assessed against the Ministry's guidelines. Whether the 15-personnel condition is met, the scope of activities that qualify as R&D, and the steps required to address any gaps are clarified at this stage.
Centre Infrastructure and Personnel Structuring
The R&D centre is configured to meet the physical and organisational conditions required by the regulations. Personnel classification and job descriptions, centre infrastructure arrangement, and the R&D 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 centre introduction report, personnel diplomas and employment documents, physical space documentation, and R&D project summaries. Each document is critically reviewed from the evaluator's perspective; weak points are strengthened before submission.
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, personnel change 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 a software company with a 20-person R&D team and ₺15,000,000 in annual R&D 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
R&D centre accreditation.
What is the fundamental difference between an R&D unit and an R&D centre?
An R&D unit is a smaller accreditation type, registered with the Ministry, for structures employing at least 10 full-time R&D personnel but not yet meeting all the conditions for centre status; it cannot benefit from all of the incentives under Law No. 5746. An R&D centre meets the requirement of at least 15 personnel and provides access to all six incentive components offered by the law. For companies that have not yet reached 15 personnel but have growth potential, planning the transition to centre status in advance through an R&D unit creates a strategic advantage.
Which expenditures can be subject to the R&D deduction?
Personnel salaries within the centre's scope, materials and consumables, outsourced service fees, equipment depreciation, and rent and overhead allocations fall within the deduction's scope. Overseas-sourced R&D expenditures may also be included, provided they do not exceed 20% of total R&D costs. Each expenditure must be documentably of R&D nature.
Is it required that all personnel conduct R&D activities?
No. An R&D centre may also employ "support personnel" alongside R&D personnel. Support personnel comprises individuals such as managers, secretaries, and accountants who directly support R&D activities without personally conducting them. The number of support personnel must not exceed 10% of total R&D personnel. The minimum requirement of 15 persons applies only to personnel who are actively conducting R&D; support personnel are not included in this count.
How long does the accreditation process take?
Including the preparation of the complete application file and the Ministry's evaluation process, accreditation is typically completed within three to six months. Addressing gaps identified during the preparation phase may extend this timeline; this is why the pre-analysis stage is also decisive in terms of scheduling. Akbaş identifies delay risks in the preparation process from the outset and works in line with the accreditation timeline.
What documents are requested during the annual audit?
During the annual audit, the Ministry requests status reports on R&D projects conducted throughout the period, personnel attendance records, expenditure tables, patent and publication lists, team changes, and physical space information. If these documents are maintained regularly throughout the year, audit preparation is swift. Akbaş monitors this record-keeping throughout the year, turning the audit into a predictable process.
pre-assessment
Does your company meet the conditions for establishing an R&D centre?
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R&D or Design Centre?
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