Communiqués on R&D Income Tax Incentives Published

On July 20, 2025, with the amendment made to Law No. 5746 on Supporting Research, Development and Design Activities and Law No. 4691 on Technology Development Zones, the amounts to be cancelled (through offset) from wages under the income tax withholding incentive, as well as the stamp tax exemption amount, have been limited to "forty times the gross minimum wage.".

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This time, in relation to the aforementioned amendments, the Revenue Administration has published the following communiqué amendments, including illustrative examples, in order to provide clarity on the implementation:

• Communiqué Amending the General Communiqué on Law No. 5746 on Supporting Research, Development and Design Activities (Serial No: 4) (Serial No: 10)
• Communiqué Amending the General Communiqué on Law No. 5746 on Supporting Research, Development and Design Activities (Serial No: 5) (Serial No: 11)
• Income Tax General Communiqué (Serial No: 331)

With the regulation dated July 20, 2025, a significant amendment has been made to the tax incentives applied under Law No. 4691 on Technology Development Zones and Law No. 5746 on Supporting Research, Development and Design Activities, and through the published communiqués, uncertainties that might arise in practice have been eliminated.

Key Highlights

Upper Limit Application: The portion of the wages of R&D, design, and support personnel related to these duties that does not exceed forty times the gross minimum wage,

• After deducting the tax corresponding to the minimum wage exemption pursuant to Article 23/1-18 of Income Tax Law No. 193,
• The remaining amount will be cancelled (through offset) by being deducted from the tax accrued on the withholding tax return to be submitted.

Stamp Tax Exemption: Likewise, for wages not exceeding forty times the gross minimum wage, the stamp tax exemption will continue to apply.

In Case of Exceeding the Upper Limit: For amounts exceeding the specified limit, income tax and stamp tax will be calculated and paid in the normal manner.

Conclusion

Updating Payroll Processes: The newly introduced upper limits are of such nature that they may lead to changes in the net wages of particularly high-paid R&D, design, and technopark employees. Considering that the implementation covers the August 2025 salary payments, payroll processes must be revised in line with these new limits.

Withholding Tax Return Control: In order to avoid correction procedures before the tax office and the risk of late payment interest, it is of great importance that the cancellation (through offset) of taxes is calculated accurately, taking into account the introduced limits.

Employee Notification: In particular, employees working on a gross wage basis should be informed in advance about possible changes in their net wages due to the regulation, in order to prevent potential dissatisfaction and legal disputes.

Communiqué Amending the General Communiqué on Law No. 5746 on Supporting Research, Development and Design Activities (Serial No: 4) (Serial No: 10)

Communiqué Amending the General Communiqué on Law No. 5746 on Supporting Research, Development and Design Activities (Serial No: 5) (Serial No: 11)

Income Tax General Communiqué (Serial No: 331)

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