Subject 19 – Technology Development Zones

tarafından | Eki 19, 2023 | Cyber Law | 0 yorum

Subject 19 – Technology Development Zones

  • Technology Development Zones

A Technology Development Zone is an academic, social, and cultural site established to allow entrepreneurs, researchers, and academics who aim to produce goods and services in new or advanced technology to conduct their industrial and commercial activities near or alongside universities and benefit from these universities.

In accordance with Law No. 4691, a Technology Development Zone refers to a site where companies that use high/advanced technology or focus on new technologies:

  • Utilize the facilities of a specific university or a high technology institute, 
  • or an R&D center or institute, Produce/develop technology or software,
  • Engage in activities to transform a technological invention into a commercial product, method, or service,
  • Contribute to the development of the region in this manner,
  • Exist within or in close proximity to the same university, high technology institute, 
  • or R&D center or institute area where academic, economic, and social structures are integrated, or at technoparks with these features.
  • The Purpose of Technoparks

According to Law No. 4691 on Technology Development Zones, the purpose of this law is 

‘‘To encourage collaboration between universities, research institutions, and the manufacturing sector to advance the country’s industry towards international competitiveness and export-oriented development by:

  • Generating technological knowledge.
  • Innovate in product and production methods.Enhance product quality or standards.
  • Increase productivity.
  • Reduce production costs.
  • Commercialize technological knowledge.
  • Support technology-intensive production and entrepreneurship.
  • Facilitate the adaptation of small and medium-sized enterprises to new and advanced technologies.
  • Create investment opportunities in technology-intensive fields, taking into account the decisions of the Board of Science and Technology.
  • Generate employment opportunities for researchers and skilled individuals.
  • Facilitate technology transfer. Establish the technological infrastructure to accelerate the entry of foreign capital that will provide high/advanced technology to the country.
  • Technoparks in Turkey

Since 2001, the Law on Technology Development Zones has been implemented to bring together industrialists, researchers, and universities, enabling them to develop new products and production methods for technological production. As of December 2021, a total of 92 Technology Development Zones have been established in various regions of Turkey, including Ankara (10), Istanbul (12), Kocaeli (5), Izmir (4), Konya (2), Gaziantep (2), Antalya (2), Mersin (2), Hatay (2), Kayseri (2), Bursa (2), Eskişehir (2), Bilecik (1), Trabzon (1), Adana (1), Erzurum (1), Isparta (1), Denizli (1), Edirne (1), Elazığ (1), Sivas (1), Diyarbakır (1), Tokat (1), Sakarya (1), Bolu (1), Kütahya (1), Samsun (1), Malatya (1), Urfa (1), Düzce (1), Çanakkale (1), Kahramanmaraş (1), Tekirdağ (1), Van (1), Çorum (1), Manisa (1), Niğde (1), Burdur (1), Yozgat (1), Kırıkkale (1), Balıkesir (1), Karaman (1), Muğla (1), Afyonkarahisar (1), Uşak (1), Aydın (1), Batman (1), Osmaniye (1), Zonguldak (1), Karabük (1), Nevşehir (1), Çankırı (1), Kastamonu (1), Kırklareli (1), Giresun (1), Rize (1), Yalova (1), Aksaray (1), and Adıyaman (1).

Out of these 92 Technology Development Zones, 73 are currently operational, while 19 are still undergoing infrastructure development and have not yet commenced operations.

https://www.sanayi.gov.tr/istatistikler/istatistiki-bilgiler/mi0203011501

  • Establishment of Technoparks

The establishment of Technoparks is specified in Article 4 of the Law as follows:

Applications related to the region are made by the Founding Committee or the managing company. To evaluate the applications, an Evaluation Committee is formed, chaired by a representative of the Ministry of Industry and Technology, with the participation of two institutions or organizations, including the Ministry of Treasury and Finance, the Ministry of Environment and Urbanization, the Presidency of Strategy and Budget, the Council of Higher Education, the Scientific and Technological Research Council of Turkey, the Union of Chambers and Commodity Exchanges of Turkey, the Small and Medium Industry Development and Support Administration, and at least one private organization engaged in technology activities to be determined by the Ministry.

  • Managing Company

The managing company, established as a joint-stock company in accordance with the law, is the company responsible for the management and operation of Technoparks.

According to Article 5 of the law, among the founders of the managing company, there must be at least one university or high-technology institute or a public R&D center or institute located within or in the province where the Teknopark is situated.

In addition, the managing company can have founders or later partners, including chambers and stock exchanges affiliated with the Union of Chambers and Commodity Exchanges of Turkey, chambers and associations affiliated with the Confederation of Craftsmen and Artisans of Turkey, local governments, banks and financial institutions, domestic and foreign private legal entities, foundations, cooperatives, and associations related to R&D and technology development, relevant public institutions, and exporters’ associations.

Local governments can become partners in the managing company without the need for further procedures based on their council’s decision. Foreign private legal entities can participate in the managing company within the framework of the Direct Foreign Investments Law dated 5/6/2003 and relevant legislation. The qualifications required for individuals to be appointed to the senior management of the managing company are determined by regulations.

The managing company is responsible for the following:

  • Planning and designing for the region.
  • Implementation of necessary infrastructure and superstructure services, as well as all kinds of services required for the region.
    • Establishing incubation centers and technology transfer offices. Evaluating R&D or design projects and allocating space within the region to entrepreneurs whose projects are deemed appropriate based on procedures and principles specified in the regulations.
  • Managing the region in accordance with the purpose outlined in this law and relevant regulations. Preventing non-compliance by entrepreneurs and third parties and taking necessary measures.
  • Support and Exemptions Provided to Technoparks
  • Support and Exemptions According to the Technology Development Zones Law
  • Budget Assistance

According to Article 8 of the Law, in the Zones; infrastructure, administrative building, R&D building, workshop, and incubation center construction, as well as machinery, equipment, and software to be used in the workshops, R&D and innovation activities, and design activities, and expenses related to incubation programs, technology transfer office services, and technology cooperation programs carried out or to be carried out by the management company may be covered within the limits of the allocation made to the Ministry’s budget for the purpose of providing assistance.

  • Tax Exemptions

Pursuant to Article 8 of the Law, the management company is exempt from stamp duty for documents related to the implementation of this Law, fees for transactions, and property tax for the immovable properties it owns within the Zone. Zones operating wastewater treatment facilities are not subject to wastewater fees levied by municipalities.

  • Personnel Support

In accordance with Article 8 of the Law, Technology Development Zone companies employing R&D personnel with at least a bachelor’s degree in the fields of supported programs (Supported Programs refer to mathematics, physics, chemistry, biology undergraduate programs of higher education institutions and other programs to be determined by the Ministry based on the opinion obtained from the Council of Higher Education) are eligible to receive support. This support covers a portion of the monthly gross salary paid to each of these personnel, equivalent to the monthly gross minimum wage amount applicable for that year, for a period of two years, and is funded from the allocation in the budget of the Ministry of Industry and Technology. However, the support provided to each Technology Development Zone company within this scope cannot exceed ten percent of the total number of personnel employed in that company in the relevant month.

Companies located in the Zones can be supported under conditions to be determined by the Ministry through regulations, within the limits of the allocation in the budget of the Ministry, for employing R&D personnel who are doctoral students for a period of two years.

Firms employing interns within the scope of the Law may also be supported, subject to conditions to be determined by the Ministry through regulations and within the limits of the allocation in the budget of the Ministry.

  • Importation Exemptions

In accordance with Additional Article 2 of the Law, goods imported for research related to software, R&D, innovation, and design projects carried out under the Law are exempt from customs duties and all kinds of funds, and the documents and transactions related to these activities are exempt from stamp tax and fees.

  • Income and Corporate Tax Exemptions

Temporary Article 2 of the Law stipulates that the gains obtained by the management companies within the scope of the Law, as well as the gains derived exclusively from software, design, and R&D activities in this Zone by income and corporate taxpayers operating in the Zone, are exempt from income and corporate taxes until December 31, 2028.

  • Tax Exemption on Salaries

Until December 31, 2028, the income tax calculated on the salaries of R&D, design, and support personnel working in the Zone, after applying the minimum subsistence allowance deduction, is exempted by offsetting it against the tax accrued on the withholding tax statement to be submitted. Documents related to these salaries are exempt from stamp duty. The number of support staff eligible for income tax withholding and employer’s share of social security premium incentives shall not exceed ten percent of the number of R&D and design personnel.

  • Exemptions and Support Within the Scope of the Law on the Support of Research, Development, and Design Activities
  • Income Tax Withholding Incentive

According to Article 3 of the Law, in technology centers, R&D centers, in public institutions and organizations, establishments using funds or loans for supporting R&D projects from international institutions or public institutions within the scope of technology development project agreements, or in R&D and innovation projects conducted by international funds or supported by TÜBİTAK, in technology venture capital-supported businesses, and in pre-competitive cooperation projects, the income tax calculated on the wages received by R&D and support personnel as well as the design and support personnel working in design projects supported by the institutions and organizations mentioned above, after applying the minimum subsistence allowance, shall be exempted as follows: ninety-five percent for those with a Ph.D. degree or at least a master’s degree in the supported program areas, ninety percent for those with a master’s degree or at least a bachelor’s degree in the supported program areas, and eighty percent for others, by being deducted from the income tax payable on the withholding statement.

  • Insurance Premium Support

According to Article 3 of the Law, in technology centers, R&D centers, in public institutions and organizations, establishments using funds or loans for supporting R&D projects from international institutions or public institutions within the scope of technology development project agreements, or in R&D and innovation projects conducted by international funds or supported by TÜBİTAK, in technology venture capital-supported businesses, and in pre-competitive cooperation projects, R&D and support personnel, design and support personnel working in design projects supported by the institutions and organizations mentioned above, as well as those whose income is exempt from income tax under Article 2 of the Technology Development Zones Law numbered 4691 dated 26/6/2001; half of the employer’s share of the insurance premium calculated on the wages they receive for these activities is covered from the allocation to the Ministry of Finance’s budget.

Under the Value Added Tax Law, as per Temporary Article 20, businesses operating within technology development zones and specialized technology development zones are exempt from Value Added Tax for the duration during which their earnings are exempt from income tax or corporate tax under Law No. 4691 regarding Technology Development Zones. This exemption specifically applies to the delivery of goods and services that are exclusively produced within these zones and are related to system management, data management, business applications, sector-specific software, internet-related software, gaming software, mobile applications, and military command and control software.

  • Under the Corporate Tax Law Exemptions 

Under Corporate Tax Law Article 5/B-(1), innovations resulting from research, development, and innovation activities, as well as software activities carried out in Turkey;

  1. a) Gains and earnings obtained as a result of leasing,
  2. b) Gains obtained from the transfer or sale,
  3. c) Gains obtained from the marketing of products after they have been subject to mass production in Turkey,

ç) Gains obtained from the sale of products produced in Turkey through the use of the invention in the production process.

This exemption also applies to income obtained as a result of violations of rights related to the invention and insurance or other compensations received due to the invention.

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