Presidential Decree No. 4625, published in the Official Gazette
dated 17 October 2021, increased the period for employees to spend
up to 50% of the total working hours out of R&D or design
centers and technology development zones until 31 December 2022,
within the scope of the withholding tax incentive applied for these
centers and zones.
What does Presidential Decree No. 4625 mean?
Under Temporary Article 2 of Law No. 4691 on Technology
Development Zones and Article 3 of Law No. 5746 on Promoting
Research, Development and Design Activities, the working periods
that employees spend out of technology development zones and
R&D or design centers are deemed within the scope of the
withholding tax incentive, provided that the period spent out of
these zones and centers does not exceed 20% of the total working
period pertaining to the application of the incentive and the
period outside of zones and centers is directly related to the
projects carried out in these zones
