What are the technopark (4691) exemptions?
Law No. 4691 on Technology Development Zones (teknokent/teknopark) grants companies operating inside designated zones a package of tax advantages for R&D, software development and design activities: corporate-income-tax exemption on qualifying zone income, income-tax withholding incentives for R&D, design and support personnel, related social-security employer-premium support, and VAT exemption for certain zone-produced software deliveries. The regime currently runs until the end of 2028.
What the exemption actually covers — and what it does not
The corporate-tax exemption attaches to income from R&D and software developed in the zone — not to everything a zone company earns. Recurring boundary disputes: revenue from customising or reselling third-party software, maintenance detached from development, and hosting or consulting income usually fall outside; licence income from your own zone-developed product falls inside. Cost-side discipline matters, because exempt and non-exempt streams need separate tracking. Note also the flip side: expenses of the exempt activity cannot be deducted against taxed income, and using the incentive requires actual presence and project approval by the zone management company.
Interaction with the rest of the stack
Teknokent status coexists with the 5746 R&D-centre regime but does not stack on the same payroll for the same benefit — companies choose per unit. Remote-work flexibilities allow a defined share of zone personnel time outside the zone with the incentives preserved, subject to notification. In diligence, investors test three artefacts: the zone operating licence, project approvals, and payroll incentive calculations — errors surface as tax exposure in the share purchase agreement’s tax indemnity.
Does zone income remain exempt after a flip-up?
The Turkish company’s zone income keeps its regime; what changes is where profits are ultimately taxed — transfer pricing between the Delaware parent and the Turkish subsidiary becomes the pressure point.
Can a company be partly in, partly out?
Yes — many operate a zone branch for R&D with commercial functions outside; the accounting separation then carries the whole structure.
Related: VAT, transfer pricing.