Presidential Decree No. 4625, published in the Official Journal of October 17, 2021, increased the period during which employees must spend up to 50% of total working time outside of R&D or design centers and development areas. technology until December 31, 2022, as part of the withholding tax incentive applied to these centers and areas.
What does Presidential Decree No. 4625 mean?
Under Temporary Article 2 of Law No. 4691 on Technological Development Zones and Article 3 of Law No. 5746 on Promotion of Research, Development and Design Activities, periods of work that employees spend outside technological development zones and R&D or design centers, scope of the withholding tax incentive, provided that the period spent outside these zones and centers does not exceed 20 % of the total working time relating to the application of the incentive and that the period outside the zones and centers is directly linked to the projects carried out in these zones and centers. The president can increase the percentage up to 50%.
Presidential Decree No. 4625 increased the percentage from 20% to 50% until December 31, 2022. The decree entered into force on October 17, 2021.
As part of the incentive withholding tax applied to technological development zones and to R&D or design centers, the percentage of work periods that can be carried out outside technological development zones and R&D or design centers has been increased from 10% to 50% until December 31, 2022.
The content is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This may be termed a “lawyer advertisement” requiring notice in some jurisdictions. Past results do not guarantee similar results. For more information, please visit: www.bakermckenzie.com/en/disclaimers.