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incentives according to subparagraph (ğ) of paragraph 1 of
article 2 of the “Law on Making Amendments on Certain
Laws and Law on Decreasing of Impacts of New Coronavirus
(Covid-19) Outbreak on Economic and Social Life” numbered
7244, which has entered into force as of 10.03.2020. The
following issues are stipulated to be permitted by Minister of
Industry and Technology limited to a 4 months period as of
March 11, 2020 according to regulation in question:

• To perform activities, carried out at R&D and design
centres in scope of the Law numbered 5746 on Assistance
for Research, Development and Design Activities, out of
R&D and design centres as well and

• To perform activities, carried out within the boundaries
of Zone in scope of Law numbered 4691 on Technology
Development Zones, out of the Zone as well.
Afterwards, above periods have been extended periodically
and recently, the opportunity to work remotely at certain
ratios to employees has been granted until the end of April
2021.

As known, it is obligatory for the firms carrying out activities
at Technology Development Zones, to physically carry out
their R&D and design activities within such zones in order to
benefit from pre-determined exemptions and incentives in
scope of Law numbered 4691. During the Outbreak, firms
benefit from income and corporate tax exemption at a rate
of 100% despite the availability of remote working personnel
while benefiting from remote working application on the
basis of certain rates.

A regulation towards including the related personnel in
scope of income tax withholding incentive in terms of hours
spent out of the zone provided not exceeding 20% of their
total working hours subject to income tax withholding at
enterprises and R&D/design centres located at Technology
Development Zones in accordance with the Law published on
03.02.2021.

With the above regulation, it is aimed to ensure personnel,
working at enterprises located in the Zone in compliance with
flexible working hours, carry out a portion of their respective
activities out of the zone and benefit identically from the
supports and exemptions included in the Law. Therefore,
the opportunity to benefit from applicable supports and
incentives according to Ministry decree only during outbreak
period has gained continuity under the discretion of law-
maker in case activities, which are obligatory to performed
within the boundaries of the zone, are carried out of the
related zone. Such situation may somewhat enlighten the
obligation to work within the Zone in order not to lose tax
advantage of Technopark during the Outbreak. However, it
is also reviewed that limitation of out of zone working hours
less than the hours determined through administrative
decisions shall bring along additional discussions.

Explanations in this article reflect the writer's personal view on the
matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any
responsibility in respect of the information and explanations in the
article. Please be advised to first receive professional assistance from
the related experts before initiating an application regarding a specific
matter, since the legislation is changed frequently and is open to different
interpretations.
12 April 2021 Nisan 2021