Incentives.

Profits generated exclusively from software, design or R&D activities carried out inside a Teknokent zone are fully exempt from corporate tax and income tax. Game studios qualify because game development is classified as yazilim (software) activity. The exemption window runs until 31 December 2028.

A studio operating inside a Teknokent can therefore earn game revenues (licensing, in-app purchases, export sales) tax-free on the income attributable to zone-based development work, provided revenues are tracked separately from any off-zone activities.

Income tax withheld on the salaries of R&D, design and qualifying support staff working in a Teknokent zone is cancelled (terkin edilir) rather than remitted to the tax authority. The waiver reduces the effective payroll cost for zone-based studios. The benefit runs until 31 December 2028.

Up to 20% of staff hours can be spent outside the zone and still qualify, with the President authorized to raise that ceiling to 100% for designated sectors or regions. Staff pursuing masters or doctoral degrees may also have up to 1.5 or 2 years of off-site time covered. Support staff are covered up to 10% of total R&D and design headcount (20% for companies with 15 or fewer staff).

Half of the employer-side social security premium owed on salaries that already benefit from the payroll income-tax waiver is covered by the Ministry of Finance budget. This effectively halves the employer's social security cost for qualifying Teknokent staff.

The benefit applies to the same off-site and postgraduate-study hours that qualify under the payroll income-tax waiver. The Teknokent management company is required to monitor compliance and notify the Social Security Provincial Directorate within 10 business days if a beneficiary no longer meets the conditions.

Software products developed and sold exclusively within a Teknokent zone are exempt from VAT. The exemption covers system management, data management, business applications, sectoral, internet, game, mobile and military command-and-control software. Digital games qualify explicitly under the 'game software' (oyun yazilimi) category.

To activate the exemption, the company must obtain approval from the Teknokent management company and apply to the relevant tax office. The benefit is available for as long as the company's earnings remain exempt from income and corporate tax (i.e. until 31 Dec 2028 under current rules).

New machinery and equipment purchased exclusively for use in R&D, innovation or design activities inside a Teknokent zone are exempt from VAT. This covers hardware used in game development such as workstations, motion-capture rigs, and server equipment. The exemption was extended by Presidential Decree No. 6583 and remains in force until 31 December 2024.

Note: check the current status of this exemption before relying on it, as the cited extension ran to end-2024 and a further renewal would require a new decree.

Equipment, materials and goods imported for use in Teknokent-based software, R&D, innovation or design projects are exempt from customs duty and all related levies. Documents and transactions related to such imports are also exempt from stamp tax and fees.

This benefit is particularly useful for studios importing specialist hardware (graphics processing units, development kits, haptic devices) or licensed technology required for their game development pipeline.

Employment contracts and related documents for R&D, design and qualifying support staff working in a Teknokent zone are exempt from stamp tax. Additionally, documents and transactions for R&D-related imports (see Customs Duty Exemption) are also exempt from stamp duty and fees.

The employment-related exemption runs until 31 December 2028.

Investors (individuals or companies) who contribute equity capital to a Teknokent-based company's eligible project can deduct that contribution from their taxable income. For individuals, the deduction is capped at 10% of declared income (after deductions and exemptions). For corporate investors, the cap is the lower of 10% of corporate profit or 20% of equity at the start of the fiscal year, with an absolute annual ceiling of TRY 1,000,000.

The incentive runs until 31 December 2028. The invested capital must remain in the company for at least four years; early withdrawal triggers back-payment of the deferred tax plus interest. This mechanism can make Teknokent startups more attractive to angel investors and corporate strategic partners.

Teknokent companies can employ foreign nationals as managers or as R&D/design staff (minimum bachelor's degree) under a streamlined process. The application to the Ministry of Labour goes through Sanayi ve Teknoloji Bakanligi's Ar-Ge Tesvikleri Genel Müdürlügü for a favourable opinion, reducing the friction that foreign hiring otherwise involves.

For international game studios setting up a Turkish R&D entity inside a Teknokent, or for domestic studios hiring senior foreign developers or artists, this facilitation meaningfully shortens the work-permit timeline.

Teknokent companies that hire doctoral-student R&D staff receive a monthly subsidy equal to the gross minimum wage per qualifying employee, paid for two years by the Ministry. The student must be enrolled in a Turkish university doctoral programme, have completed coursework, and be in the dissertation phase. The base salary paid by the company must be at least 1.5 times the gross minimum wage.

Each company can receive this support for up to two doctoral students at a time. The student must not be receiving equivalent public support from another institution. The benefit applies to hires made on or after 3 February 2021.

Teknokent staff can perform part of their zone-related work remotely and continue to benefit from all statutory exemptions and support as if they were physically in the zone. The default remote-work allowance is 20% of total hours or headcount, but the President is authorised to raise this ceiling sectorally or regionally, up to 100%.

For bilisim (IT) personnel whose profile is defined in the regulation (four-year computer/electronics/software graduates, and others working in software, design, analysis, networking or related testing and maintenance roles), the remote ceiling was set at 75% for 2022-2023 and at 100% for the April-December 2023 period by separate Presidential Decrees. Studios should verify the current applicable rate before structuring hybrid arrangements.

Teknokent companies whose annual tax-exempt profit exceeds TRY 1,000,000 must transfer 2% of that exempt amount into a dedicated reserve account. This amount must then be invested by year-end in Turkish venture capital investment funds, venture capital investment trusts, or as direct equity into other Teknokent incubatee companies.

Failure to make the transfer means 20% of the year's exempt earnings become ineligible for the tax exemption, with resulting back-taxes charged (without a tax-loss penalty). The annual obligation is capped at TRY 20,000,000. The President can adjust the rate and caps by up to five times or down to zero. This mechanism channels successful Teknokent companies' profits back into the startup ecosystem.