Law No. 4691 grants certain tax and contribution advantages to companies operating in technology development zones. As the scope and duration of the advantages can change in legislation, the summary below is for information; consult your accountant and the zone management for the current position.
Main advantages
- Corporate or income tax exemption: Earnings from software and R&D activities carried out in the zone are exempt from tax for the period set in legislation.
- Staff income tax exemption: The wages of R&D, design and software personnel working in the zone for these activities are exempt from income tax.
- Social security support: For R&D and support staff, part of the employer's insurance premium share may be covered by the Treasury.
- VAT exemption: A VAT exemption applies to certain software deliveries and services.
- Customs and stamp duty facilities: A stamp duty and fee exemption applies to papers relating to R&D projects.
Conditions
To benefit from the exemptions, the activity must be carried out inside the zone boundaries, be based on an R&D or software project approved by the zone management company, and staff must actually work in the zone. Monthly staff notifications and period-end activity reports form the basis of the exemption.
Calculation
With the tax advantage calculator on our site you can see an estimated result based on your own figures.