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An Incubation Center Can Be Established Outside TGB

The Proposed Law Amending the TGB Law was approved by the General Assembly of the Grand National Assembly of Turkey (TBMM). Accordingly, incubator centers can now be established outside of Technology Development Zones (TGB). Additionally, incentives covered by the law have been extended from December 31, 2023, to December 31, 2028.

The Proposed Law Amending the Technology Development Zones (TGB) Law and Certain Other Laws was approved by the General Assembly of TBMM. After discussions, the proposal was voted on electronically in its entirety. A total of 298 deputies voted, with 297 voting in favor. R&D AND EQUIPMENT SUPPORT: With the proposal, if permitted by the Ministry based on the decision of the Evaluation Board, an incubator center can be opened outside the TGB region by the managing company. The construction of infrastructure, administration and R&D buildings, workshops, and incubator centers in the regions, as well as the machines, equipment, and software to be used in workshops, and incubation programs related to R&D, innovation activities, and design activities carried out or to be carried out by the managing company, can be funded provided they are within the budget allocated by the Ministry.

According to the proposal, from January 1, 2022, technology park companies and R&D centers benefiting from tax deductions of 1 million or more will need to allocate 2% of this amount to a temporary account in the liabilities to utilize the incentives. The amount required to be transferred will be limited to 20 million TL.

INCENTIVES EXTENDED

The proposal extends the incentives for technology firms under the TGB Law from December 31, 2023, to December 31, 2028. Additionally, an electronic seal practice is introduced. According to the proposal, in the article regarding the election procedures of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) Law, submitting a registry certificate instead of the original or a certified copy of the signature circular, indicating that the representative of the legal entity has the authority to carry out representation and binding transactions on behalf of the legal entity, will be sufficient.

NO ADMINISTRATIVE FINES WILL BE IMPOSED

In the context of general and regulatory transactions, if open export accounts not notified to the relevant tax office directorates/treasuries or tax office departments within the due time are notified within sixty days from the date the article comes into effect, administrative fines concerning banks for these notifications will not be imposed.

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