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What advantages do R&D and design centres provide?

An income-tax withholding incentive, SGK (Social Security Institution) premium support and the R&D deduction are the main advantages; there are minimum staffing and activity requirements. W…

Updated · July 20261 min readCategory · Focus Areas
Short answer

Income-tax withholding incentives, SGK (Social Security) premium support, and the R&D deduction are the principal advantages; there are minimum-headcount and activity conditions. We manage the application and maintenance obligations end to end.

An income-tax withholding incentive, SGK (Social Security Institution) premium support and the R&D deduction are the main advantages; there are minimum staffing and activity requirements. We manage the application and maintenance obligations end to end.

These advantages sit under Law No. 5746 on the Support of Research, Development and Design Activities, which is why the status must be applied for and then maintained rather than assumed: it requires a minimum number of full-time R&D or design personnel, an eligible project scope, and regular activity reporting. Losing the headcount or the reporting can suspend the benefits, so we track the maintenance conditions alongside the tax filings.

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Related questions

Yes; profits, dividends, and sale proceeds can be transferred freely. With the right tax and documentation arrangements, transfers are routine transactions; we also make sure you benefit from double taxation treaties in the most efficient way.

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The incentive system does not distinguish between domestic and foreign investors; in addition, double taxation treaties provide a significant advantage in profit repatriation. We set up the structure with the taxation of both countries in view.

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