What is a Technology Development Zone?
Technology firms, universities, or research institutes can utilize Technology Development Zone centers to produce commercial products, methods, or services from technological inventions.
This will contribute to regional development. A university, technology institute, or research center located near an integrated academic, economic, and social structure, or a technopark with similar features.
Why do tech firms prefer Technology Development Zones?
Today, numerous technology firms seek to establish themselves in Technology Development Zones due to the tax benefits provided to businesses stationed there, Technology Development Zones also known as Technoparks.
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This article aims to explain these advantages and how to utilize them in plain and straightforward language.
What is the tax exemption for income and corporations in Technology Development Zones?
➡️ For companies outside of Technology Development Zones, the corporate tax rate is 25%.
➡️ For companies located in Technology Development Zones, there is no 25% tax applied.
This means that you will not pay a 25% tax on the difference between your income and expenses.
This is the first advantage.
Naturally, there are additional particulars, yet primarily the principal benefit is the lack of business tax. Instantly, a weight of 25 percent tax is removed from you, making you feel less burdened when you operate in Technology Development Zones
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To qualify for tax benefits, you need to perform software, design, and research and development tasks.
Also, each Technology Development Zone (technopark) has a managing company that must approve your project. You have to meet obligations during the project process.
Value-Added Taxes in Technoparks
Outside: Companies engaged in software development, research and development, and design activities outside Teknokent are subject to a value-added tax of 20%.
Inside: Nevertheless, if you are within the premises of Technology Development Zones and meet certain requirements, the value-added tax rate becomes zero.
Do Technopark company employees' wages qualify for income tax exemption?
The salaries of employees in R&D, design, and support roles hired by your company in Technopark are exempt from all forms of tax, including income, stamp duty, and other taxes.
However, the salaries of all employees are subject to income and stamp tax. Nonetheless, the wages of those who meet the number and qualifications outlined in the law are exempt from income tax.
Social Security Premium Incentives in Technoparks
The insurance premium of your staff working in the Technoparks is lower than those working outside.
But it is not zero like income tax.
For a support staff who is paid minimum wage, there is a benefit of approximately 600,00 TL.
The basis of the calculation is based on not paying half of the employer's share of the insurance premium.
What do we offer to companies in Technology Development Zones?
We provide support in preparing their company infrastructure and establishing their business.
We also offer consultancy services and monitor monthly incentives and exemptions.
We keep track of monthly progress reports for their projects, as well as monthly and annual exemption reports
Patent and Industrial Property rights exemption, earnings calculation and advice on exemption application.
For more information, you can reach us at info@ozmconsultancy.com
www.ozmconsultancy.com
CPA Evren ÖZMEN
