Turkey published Presidential Decision No. 6652 in the Official Gazette on 10 January 2023, which provides for an extension of the increased deduction for qualifying innovation and research and development (R&D) expenditure. In general, all qualifying innovation and R&D or design expenditures made in technology centers, R&D centers, design centers, and R&D and innovation or design projects supported by the government are allowed a 100% deduction.

Further, an additional 50% deduction is allowed if there is at least a 20% increase in certain indicators in an R&D or design center. Presidential Decision No. 6652 amends these indicators including additional indicators based on the total number of designers. The amended indicators include:

• The share of R&D or design expenditure in total turnover;
• The number of registered national or international patents;
• The number of internationally supported projects;
• The ratio of the number of researchers with graduate degrees to the total number of R&D personnel in R&D centers;
• The ratio of the number of designers with graduate degrees to the total number of design personnel in the design centers (new);
• The ratio of the total number of researchers to the total number of R&D personnel in R&D centers;
• The ratio of the total number of designers to the total number of design personnel in design centers (new);
• The ratio of turnover obtained from new products resulting from R&D or design activities to total turnover (design activities added).

In addition to amending the indicators, Presidential Decision No. 6652 also extends the application of the additional deduction. The additional deduction was introduced by Presidential Decision No. 9092 in August 2016 and was to apply until 31 December 2023. This is now extended to 31 December 2028.