Turkey has published Law No. 7263 of 28 January 2021 in the Official Gazette. The law provides for the amendment and the extension of incentives provided for enterprises operating in technology development zones (TDZs).
One of the main changes is that with effect from 1 January 2022, TDZ enterprises with earnings (profits) of at least TRY 1 million are required to record 2% of their earnings that are exempted from tax in a special fund account, up to a cap of TRY 20 million per year. Such amounts must be used for the acquisition of shares of venture capital funds or to invest in venture capital partnerships or companies in the business incubator by the end of the year in which the special fund account was created. If the requirement is not met, 20% of the TDZ enterprise's profit will not be eligible for the TDZ tax exemption for the relevant year.
Other changes include:
The law was published on 3 February 2021 and entered into force on that date.
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