THE STAGE AT WHICH R&D ACTIVITY ENDS IN TÜRKİYE
Within the scope of Law No. 5746 on Supporting Research, Development and Design Activities, R&D activity ends at the stage where the first production is made, essentially at the end of the trials.
THE DEVELOPMENT OF THE COMPLETED PRODUCT IS CONSIDERED AS AN R&D PROJECT
The R&D project in Türkiye is considered to be completed when the product obtained as a result of the R&D project reaches the marketable stage. Expenditures made after this date are not considered as R&D expenditures. However, the studies to be carried out for the development of the product obtained as a result of a completed project are considered as a new R&D project.
EXPENDITURES RELATED TO MASS PRODUCTION OF THE PRODUCT WHOSE R&D PHASE IS COMPLETED ARE OUTSIDE THE SCOPE OF R&D
Expenditures incurred during the creation of the final product in order to measure the usability of the products obtained during the creation of the final product and to test them inside or outside the enterprise in order to make changes when necessary are within the scope of R&D activity. However, expenditures related to the planning of commercial production and the mass production process, as well as expenditures made for samples produced and distributed for the purpose of promoting the product are also excluded from the scope of R&D activities.
TESTS FOR THE USABILITY OF THE PRODUCT WHOSE R&D PHASE HAS BEEN COMPLETED ARE WITHIN THE SCOPE OF R&D ACTIVITY
Since the costs related to the part of the first materials and materials used in the test production actually used in the R&D activity and the expenditures made in order to test the products obtained during the creation of the final product in order to measure the usability of the products obtained during the creation of the final product and to make changes when necessary are within the scope of R&D activity, the equipment installed in the existing production lines for testing the final product inside or outside the enterprise and the depreciation related to the production lines where such equipment is used; It is possible to take into account in the calculation of the amount subject to R&D deduction within the framework of the explanations made in the General Communiqué on the Law No. 5746 on Supporting Research, Development and Design Activities and the Implementation and Audit Regulation on Supporting Research, Development and Design Activities. It is possible to take into account in the calculation of the amount subject to R&D deduction within the framework of the explanations made in the General Communiqué on the Law No. 5746 on Supporting Research, Development and Design Activities and the Implementation and Audit Regulation on Supporting Research, Development and Design Activities. In this context, expenses related to the first materials and supplies used in the test productions carried out in factories located outside the physical boundaries of the R&D center can be subject to R&D deduction.
THE DEPRECIATION OF THE MACHINES USED IN THE TESTS PERFORMED OUTSIDE CAN BE EVALUATED WITHIN THE SCOPE OF R&D BY PROPORTIONING THEIR DEPRECIATION.
In the factories located outside the physical boundaries of the R&D center, the depreciation calculated for the existing production line used in activities other than R&D activities in the factories located outside the physical boundaries of the R&D center should be taken into account in determining the amount subject to the R&D deduction only for the number of days these production lines are used in R&D activities. It is not possible to subject the depreciation of the production lines whose number of days used in R&D activities cannot be determined to R&D deduction.
Within the scope of Law No. 5746, the wages accrued in relation to the R&D personnel employed for the execution of R&D and innovation activities carried out within the scope of the Law No. 5746 and within the scope of income tax withholding incentive application will be evaluated within the scope of R&D, innovation and design expenditures.
Source: Law No. 5746, Revenue Administration Special Note
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