In Turkey, companies operating in Technology Development Zones (TDZs / Technoparks) benefit from a major tax incentive:
Profits generated from R&D, software, and design activities are exempt from corporate income tax.
The purpose of this incentive is to encourage technological innovation, increase high-value-added production, and strengthen Turkey’s global competitiveness.
The exemption applies only to income earned from eligible activities conducted within the zone.
Commercial operations such as manufacturing, sales, or marketing are not covered by the exemption.
With the approval of the zone’s managing company, certain activities performed outside the zone — such as client visits or field tests — may also qualify for partial exemption.
This incentive not only covers corporate income tax, but also provides personal income tax exemptions on employee wages and employer social security premium support, offering a comprehensive financial advantage for technology-oriented businesses.
A software company developing an application within a technopark is exempt from corporate tax on the income generated from that project.
However, revenues from consulting or sales activities are outside the scope of the exemption.
Legal Framework
The exemption is regulated under the Technology Development Zones Law and Article 5/1-ğ of the Turkish Corporate Tax Law (Law No. 5520) and has been extended until the end of 2028.
Its main objective is to support technology-focused enterprises and promote innovation-driven production in Turkey.
For professional guidance on tax exemptions, incentive planning, and compliance for Technology Development Zones in Turkey, contact ÖzbekCPA.
