Incentives providing research and development activities an its reporting

R&D activities which provide comparative advantages and competitiveness to countries in the economics field, is one of the basic starting point of technologic developments. The governments aware of this, give serious attention to be increased the R&D spendings gradually by incidements. R&D tax incentives have a set of advantages whwn it is compared to grants and subsidies. Tax incentives involve less interference in the market and allow private sector to select R&D project. Tax incentives require less bureaucratic process. Also they are more accessible, predictable and stable than direct support. With several research on the effectiveness of R&D tax incentives in several countries that use fiscal incentives to stimulate R&D at a long time find evidence that tax incentives are effective in increasing R&D activities.Law No 5746 is the most extensive arrangement adapted for supporting R&D activities. Within the meaning of the law; R&D discount, income tax withholding incentives, social insurance contributions support, stamp tax incentives, contributions of establisment which are forming tecno interference capital support and precompetition cooperation projects recording in aspecial account, are the potential incentives and supports.Equally, receiving financial supports from public body, foundation published by law and international founds is recorded in a special account by people who are going at innovation and R&D projects.Turkish Accounting Standarts and Uniform Accounting System is predicated on entering supports in the accounts.Chartered Accountant Report is obligated to benefit supports of projects which are sponsored by The Scientific and Technological Research Council of Turkey (TÜBİTAK) in application and supporting process.Coming across the application and audit processes more understandable and basic, making up a positive effect on people who are consider to derive benefit from incentives. Furthermore, some uncertainties result from legal arrangements and removed problems result from application is definitely helped to attain adjustments for R&D supports? object.