TAX INCENTIVES IN RESEARCH AND DEVELOPMENT ACTIVITIES: TURKISH PRACTICE

Abstract

In the current economies, technological innovations are one of the most important considerations because of development of countries. The countries should invest research and development (R&D) activities in order to have the technological innovations. Owing to the failure of the market, the countries use some incentive instruments to encourage investments for R&D activities. The one of these instruments is the tax incentives. In 2000’s, Turkey has provided important tax incentives for R&D activities. These incentives usually include tax deduction and exception for R&D activities. In this study, these incentives policies and their efficiency are investigated as comprehensive approach.