The expenses at R&D and Design Centers are considered as a discount in Corporate Tax Basis since these expenses are supported but capitalized. The capitalized account is first added to the 263 Research and Development Expenses account. When the project is completed and successful, the amount in the related account is transferred to the 260-Incorporeal Rights account and amortized for 5-year period. The amount on account 263 will also be considered as a Corporate Tax discount for the R&D discount of the related year. 

The detailed control of the related expenses is extremely important for the correct calculation of the R&D discount. The distribution of the personnel wage working on the project to related projects, not taking the inventories taken for use in the project into this account when they are first taken, taking the resulting cost into 263 accounts as they are used, the outsourced consultancy fee not exceeding 20% of the total R&D expenses, not considering accounting expenses under this scope, including travel, phone and fax expenses to R&D discount shall be evaluated within this scope.

On the other hand, it is important to deduce the incentives and grants from TUBITAK from R&D Discount calculated on Corporate Tax. Within this scope, the grants should be calculated based on the precautionary principle and deducted from the R&D Discount.
R&D discount amount that is not applied due to insufficient income will transfer to following years by indexing for revaluation rate according to Law No. 5746.

Additional R&D Discount

If there is an increase in the following items and rates in the following year, the R&D expenses on that year shall be increased by 50% of the amount that exceeds the previous year for an extra discount.
•     The share of R&D or design expenses in total revenue
•     The number of registered national or international patents
•     The number of internationally supported projects
•     The ratio of graduate researchers to total R&D personnel 20% INCREASE
•     The ratio of total researchers to total R&D personnel        
•     The ratio of new product revenue as a result of R&D to total revenue