Guide to Setting Up a Company in a Technopark: Tax and SSI Exemptions
When you start a technology-focused business, one of the most critical hurdles your company faces is planning tax and staff costs from the very beginning. For software and R&D start-ups, technoparks (Technology Development Zones) offer tax and SSI incentives. Most of these advantages are subject to specific rules, and it is worth remembering that they are currently valid until 31 December 2028.
In this guide, we explain in plain language the incentives that come with setting up a company in a technopark, the conditions for benefiting from them and how the structure differs from the R&D centre model.
🚀 At a Glance
Corporate tax exemption: Profits from software, design and R&D activities you carry out in the technopark are exempt from income and corporate tax until 31.12.2028.
Staff incentives: Income withholding tax calculated on the wages of R&D, design and support staff in the zone is waived, and half of the employer’s SSI contribution is covered by the Treasury.
VAT exemption: Supplies of and services for certain types of software you produce in the zone are exempt from VAT; this exemption is based on the VAT Law.
Difference from an R&D centre: A technopark has no minimum staff requirement, whereas an R&D centre needs at least 15 (a design centre 10) full-time equivalent staff.
What Is a Technopark and Which Law Governs It?
Technoparks are zones set up under Technology Development Zones Law No. 4691 and run by a management company. To operate in the zone, you must sign a lease with the management company and have your project approved as R&D or software work. Almost all of the exemptions in the zone depend on the condition of “activity carried out exclusively within the zone”.
To set up a company in a technopark and benefit from the tax advantages, you basically need to complete these two steps:
Renting Space: Having a physical office in the zone by signing a formal lease with the management company.
Getting Project Approval: Having the committee approve that your planned activity (software, R&D or design) meets the technopark criteria.
This is exactly where the "activity carried out exclusively within the zone" rule comes in: for the tax and SSI reductions to apply, the work must be carried out solely and only in this zone (in the office). Routine work carried out from outside the zone or in other areas falls outside this scope.
Corporate Tax and Income Tax Exemption
You pay no income or corporate tax on the net profit from your software, design and R&D projects within the technopark until 31 December 2028.
To apply the exemption correctly, you need to pay attention to the source of income and the effect of costs on net profit:
Only Eligible Work: The exemption covers only the profit from approved R&D and software projects you carry out within the technopark; income from routine commercial activities outside the zone or outside the scope cannot benefit from it.
Deducting Costs: Once all project-specific expenses and costs have been deducted from total revenue, the entire remaining net profit is exempt from tax.
⚠️ Commercial profits, consultancy income and standard product sales from activities outside the technopark are not covered by the exemption. You should track income from inside and outside the zone under separate account codes in your statutory books.
💡 Üstad Reminder: When your exempt profit exceeds a certain amount, you may be required under Law No. 4691 to transfer part of it to venture capital funds. If the transfer is not made, you cannot benefit from the exemption for that year. Always confirm the current threshold and rate with your accountant.
Staff Incentives
1. Income Withholding Tax Incentive
The income tax burden on the salaries of staff working on your R&D, design or software projects in the technopark is removed entirely. Income tax calculated on the wages staff receive directly for this work is waived through the withholding tax return and is not paid.
The main rules and limits to bear in mind in practice are:
Minimum Wage Base: The incentive applies to the tax remaining after the minimum wage tax exemption, which applies to all employees, has first been deducted from the salary.
Wage Cap: The withholding tax exemption applies to the part of the salary up to 40 times the gross minimum wage.
Working Within the Zone: The exemption is calculated only for the wage corresponding to the hours staff work within the technopark (or under permitted remote working).
Support Staff Ratio Limit: The number of support staff (administration, accounting, etc.) who can benefit from the incentive cannot exceed 10% of the total number of R&D and design staff. For small firms with 15 or fewer staff in total, however, this ratio is 20%.
2. SSI Employer Contribution Support
To reduce the social security contribution burden for staff working in the technopark, 50% of the employer’s contribution is covered by the Treasury. When running financial operations, however, you need to pay attention to the legal basis of this support and the SSI reporting process.
The main points in practice are:
Governing Law: This support is not based directly on Technopark Law No. 4691; by cross-reference it rests on Article 3 of R&D Law No. 5746.
Link to the Withholding Incentive: The support applies only to R&D, design and eligible support staff who benefit from the income withholding tax incentive.
SSI Reporting Procedure: To benefit from the contribution reduction, monthly contribution and service documents (or the MPHB) must be filed by selecting the law number the SSI has defined for this incentive.
3. Stamp Duty Exemption
There is a significant cost advantage on documents issued for R&D, design and support activities carried out in the technopark. In particular, payrolls issued for staff salary payments are fully exempt from stamp duty for the part of earnings up to 40 times the gross minimum wage.
Details to watch in practice:
Payrolls: Thanks to this exemption, the stamp duty deduction shown on employees’ monthly payrolls is reduced to zero.
Project Documents: As the scope of the exemption may differ for other project contracts, undertakings or employment documents not related to staff pay, it is advisable to review such documents one by one with an accountant.
4. VAT Exemption
There is a significant VAT advantage on sales of technology products and services offered in technoparks. Software you develop and produce in the zone, such as:
System management, data management and business applications,
Sector-specific software, web and mobile applications,
Games and military command and control software
is, together with the related services, exempt from VAT on supply for as long as your profits are exempt from tax.
The legal basis for this incentive is not Technopark Law No. 4691 but directly Provisional Article 20 of the VAT Law.
Critical details to watch in practice:
Separating Invoice Items: When issuing an invoice, the software fee and any service fees such as maintenance, support or consultancy must be clearly separated and shown on separate lines. If this is not done, VAT is calculated at the standard rate on the total amount.
Production in the Zone: For the exemption to apply, the software must have been produced exclusively in the office within the technopark. Software developed at the company’s head office or branches outside the zone is not covered.
Machinery and Equipment Purchases: In addition, under Article 13/m of the VAT Law, supplies of new machinery and equipment purchased for use solely in R&D and design activities in technoparks are also exempt from VAT.
5. Customs Duty Exemption
There is an advantage on foreign trade costs for special hardware and materials that must be sourced from abroad for R&D projects carried out in the technopark. Research equipment and prototypes imported for use in the project may be exempt from customs duty and related fund levies.
The most important points in this process are procedure and timing:
Prior Confirmation: Before starting the import, you must confirm with the technopark management company and under the relevant customs rules that the equipment exactly matches the project scope.
Coordination Between Accountant and Management Company: Preparing all the required permit documents in full before import will prevent problems at customs and keep the process running smoothly.
Technopark or R&D Centre?
The two models are based on different laws and suit different businesses.
Criterion | Technopark Company (4691) | R&D Centre (5746) |
Location | Must be within the boundaries of a technology development zone | Part of an existing business premises can be registered |
Minimum staff | No lower limit | At least 15 full-time equivalent staff for an R&D centre, at least 10 for a design centre |
Corporate tax | Exemption on profits earned in the zone | 100% deduction for R&D and design expenditure (additional deduction for increases at centres meeting certain criteria) |
Income withholding tax | All tax remaining after the minimum wage exemption is waived | Between 80% and 95% depending on staff education level |
SSI employer contribution | 50% Treasury support | 50% Treasury support (for 5 years per employee) |
VAT | Exemption for software produced in the zone and for R&D machinery/equipment | Exemption for machinery/equipment used in R&D activity |
What to Do Before and After Setting Up Your Company
Make sure your project qualifies as R&D or software work and has been approved by the management company.
Track income from inside and outside the zone under separate account codes.
Record staff working hours in the zone regularly. Check whether special rules such as remote working apply to IT staff.
Check your number of support staff against the 10% limit (20% for up to 15 staff) in every payroll period.
Show the software fee separately on your software invoices.
Confirm the venture capital fund transfer obligation and the sworn financial adviser (YMM) certification requirement with your accountant.
Bear in mind that the incentives end on 31.12.2028 and plan for the long term accordingly.
❓ Frequently Asked Questions
What is the minimum number of staff needed to set up a company in a technopark?
There is no minimum staff requirement for setting up a company in a technopark; one-person start-ups can also apply. The minimum staff requirement applies to R&D centres.
Is all the income of technopark companies exempt from tax?
No. Only profits from software, design and R&D activities carried out in the zone are exempt. Income from commercial activity outside the zone and general consultancy is taxable.
Is VAT charged on sales of software produced in a technopark?
Supplies of and services for certain types of software produced in the zone are exempt from VAT; however, the software fee must be shown separately on the invoice.
How do you benefit from the SSI support?
For staff covered by the income withholding tax incentive, 50% of the employer’s contribution is covered by the Treasury. The support is based on Law No. 5746, and contributions are reported in the way the SSI specifies.
How long are technopark incentives valid?
The profit exemption, staff incentives and VAT exemption apply until 31.12.2028. We recommend following any legislative changes made for the period after that.
