Accounting and tax applications in r&d and design centers

R&D activities are very important for realizing technology-oriented production on which competitive strategies and concepts have been developed, and it is a subject that countries and enterprises place at the center. In fact, the statistical data of R&D expenditures of countries are associated with the development level of the countries. Law No. 5746 on Supporting Research, Development and Design Activities was enacted in 2008 based on the fact that R&D should be focused for a production with high added value that will accelerate economic growth in Turkey. This law has created the R&D center concept where R&D and innovation projects of Turkey will be conducted and introduced incentives to encourage the establishment of these centers by the private sector. As of 2016, the concepts of design center and design activity were added to Law No. 5746. Financial transactions related to the R&D and innovation activities conducted in R&D and design centers and the tax issues related to the incentives included in the Law No. 5746 created the need for accounting applications for these centers. It has been determined in the literature review that accounting and tax applications related to the projects carried out in these centers are examined in a piecemeal fashion. This thesis aims to explain accounting and tax application processes by taking into consideration the financial support provided to the enterprise by the incentive elements specific to R & D and design centers and the project costs. Also, this study is important the concretizing of the accounting and tax practices that arise in these centers and examining the tax and cost advantages of the enterprises with a holistic approach. In accordance with this purpose, a model application was developed by using descriptive research technique and case study method together. It is assumed In this case study that a company operating in the field of food manufacturing machinery has an R&D center and that two different projects are carried out in this center. The financial issues that may possibly arise during the process of these projects are prepared in monographs. The accounting records of the monograph are entered in accordance with the Turkey Accounting Standards (TMS), the Uniform Accounting Plan, generally accepted accounting principles, provisions of Law No. 5746, and the special notices of the Revenue Administration. According to the model application results, the incentives provided by the government to enterprises with R&D and design centers are a serious source of finance for enterprises.