R&D Center Incentives in Türkiye | 5 Key Advantages Under Law No. 5746

R&D Center incentives in Türkiye, set by Law No. 5746, form the country’s most comprehensive technology incentive package: a corporate tax deduction, a withholding tax exemption on researcher salaries and support with employer social security premiums. For food, chemicals, machinery and metal manufacturers, the package lays the financial and legal groundwork for moving into high value-added production.

Why R&D Center incentives matter for manufacturers in Türkiye

Take Mersin Tarsus Organised Industrial Zone (MTOSB): its closeness to Mersin Port and its links to neighbouring provinces help new technology reach domestic and export markets fast. Most chemical and machinery companies there produce at the medium-high technology threshold, and the most systematic way to cross it is a formal R&D Center structure.

A company that gains R&D Center status wins more than tax advantages. It gains a clear cost edge over competitors when hiring qualified engineers, and grows its patent output under one formal structure. For metal and food manufacturers, the structure also strengthens the product documentation they need for the European market.

5 key exemptions under Law No. 5746

The Law gives companies several exemption channels that improve cash flow directly. Each one affects a different cost item, so focusing on only one undervalues the package.

• R&D deduction: all R&D spending carried out within the Center is deducted from the corporate tax base (100% deduction).
• Income tax withholding incentive: 95% for staff with a PhD, or a master’s degree in the supported field; 90% for staff with a master’s degree, or a bachelor’s degree in the supported field; 80% for other R&D staff. Any part of the wage above 40 times the gross minimum wage is excluded.
• Social security premium support: the Treasury covers half of the employer’s share of Social Security Institution (SGK) premiums for five years.
• Stamp duty exemption: all contracts and documents of the R&D Center are exempt from stamp duty.
• Customs duty exemption: imported machinery and equipment used for R&D are exempt from customs duty.

R&D Center incentives compared: the financial advantages

The table below sums up the incentive types under Law No. 5746, what each one covers and the advantage it brings.

Application process and key thresholds

Minimum staff and the Center’s physical set-up

The core condition for R&D Center status is employing at least 15 full-time equivalent (FTE) R&D staff. Beyond headcount, these factors also decide approval:

• The Center is physically separate from the factory floor
• A project-based record system is set up and working
• Accounting infrastructure is ready for Ministry audits
• Activity reports are complete for every period

Approval starts a monitoring period. If spending is misclassified or activity reports are incomplete during that period, incentives can be clawed back with interest. That is why keeping the status takes as much care as winning it.

Combining it with an Investment Incentive Certificate

In a well-structured project, R&D Center incentives and an Investment Incentive Certificate can run side by side. Customs duty exemption appears in both, while the R&D deduction exists only under Law No. 5746. Mapping where the two packages overlap and where they complement each other can raise the total incentive value considerably. For a full assessment, see our R&D and investment incentive consulting service.

For official legislation and the latest announcements, follow the Republic of Türkiye Ministry of Industry and Technology website.

Hiring qualified staff and the competitive edge

R&D Center status lets manufacturers outside the big cities make competitive offers to skilled engineers. Social security premium support and the withholding exemption together create a cost advantage that, in food technology and chemicals in particular, speeds up product development.

In a location like Mersin, this skilled workforce combines with a port economy and logistics infrastructure to turn an industrial zone into a technology-focused manufacturing hub. When products developed through R&D are ready for international markets, export and business development consulting is the natural next step.

From our base in Ankara, FIX manages every step, from preparing the application to the Ministry audit. The incentives are open to companies established in Türkiye, and we work with you to structure the package correctly and run it sustainably.