SECTOR-SPECIFIC SOLUTIONS · DEFENCE INDUSTRY
Defence investments'
incentive and R&D map.
Turkey's defence industry is one of the rare sectors that can reach maximum state support under the 2012/3305 decree through strategic investment status. A broad structure ranging from manufacturing facilities to R&D centres, from system integration to software development falls within the incentive scope.
Sector Profile
The defence industry features among strategically prioritised sectors in Turkey's investment incentive legislation. Increasing domestic production rates, developing critical technologies and strengthening the defence ecosystem are at the heart of state policy. This priority is directly reflected in incentive mechanisms; manufacturing investments, R&D activities and system development projects can be supported independently or together.
Incentive Applicability Table
| Investment Type | Incentive Route | Priority |
|---|---|---|
| Defence manufacturing facility | STB Strategic Investment Incentive | High |
| R&D and system development | Law No. 5746 + TÜBİTAK 1511 | High |
| Electronics and software development | Law No. 5746 / Design Centre | High |
| System integration investment | STB Strategic Investment Incentive | Medium |
| Infrastructure and facility modernisation | STB Regional / Large-Scale | Medium |
Key Legal References
Decision on State Aids in Investments
Strategic investment status, defence sector priority area
Law on Support for Research, Development and Design Activities
R&D centre establishment, 150% R&D deduction
TÜBİTAK Priority Areas Research and Technology Development
Project support in defence and security priority areas
Incentive Profile
Defence Industry Quick Reference
Applicable Services
Services and supports
used in this sector.
STB
Strategic Investment Incentive
Defence manufacturing facilities qualify for strategic status due to domestic content rate and import dependency criteria. Tax reduction, customs exemption and investment site allocation apply within this scope.
TÜBİTAK
1511 Priority Areas Programme
Defence and security technologies are on TÜBİTAK's priority areas list. Projects within this scope benefit from higher grant rates and an extended budget ceiling.
LAW NO. 5746
R&D Centre (Law No. 5746)
R&D centre establishment in defence companies provides 150% R&D deduction, SGK support and income tax withholding exemption. Critical technology development projects are positioned within this structure.
FINANCIAL ADVISORY
Tax Advisory
Correctly applying R&D deduction, incentive-covered tax reduction and VAT exemptions in the defence sector requires critical financial discipline.
FINANCIAL ADVISORY
Accounting & Financial Reporting
R&D expense classification, investment expenditure tracking and financial reporting processes under the incentive certificate in defence projects require a specialist approach.
TÜBİTAK
1501 Industrial R&D Support
Defence industry suppliers can apply for project-based grant support under 1501 in addition to 1511. Sub-system and component development projects are supported through this programme.
Process Management
How does the incentive process
work in the defence sector?
From SSB qualification assessment to Ministry application, from TÜBİTAK preliminary assessment process to annual R&D reporting — we manage every step.
Sector & Project Analysis
SSB qualification requirements and investment scope are assessed. The question of whether to structure a manufacturing facility, R&D organisation or both together is answered. Existing domestic content rate and import dependency data are analysed.
Status Determination
Strategic investment, R&D centre, or both together? An optimal structure analysis is carried out. A combined structure is designed in which different mechanisms can be applied without conflicting with each other.
Application Preparation
Technical file, feasibility report, domestic content certificate and institutional coordination are completed. Import dependency analysis and domestic added-value calculations are prepared for strategic investment applications.
Ministry Process
STB application, TÜBİTAK preliminary assessment or Law No. 5746 audit is managed. Assessment Commission process is followed; necessary corrections and additional documents are provided on time.
Incentive Follow-Up & Monitoring
Investment completion visa, annual R&D reporting and additional application opportunities are monitored. Certificate extension procedures are completed on time; the impact of legislative changes on the investment is continuously monitored.
Frequently Asked Questions
Common questions about
the defence industry.
Do defence industry investments always receive strategic incentive?
No. Specific minimum investment amounts and sectoral criteria are required for strategic status. Although the defence sector is defined as a priority area, an eligibility analysis is carried out first for every project. Small-scale investments may be assessed under regional or large-scale incentive status.
Is SSB certification mandatory for incentive applications?
Not directly mandatory for incentive applications. However, SSB collaboration is advantageous in some R&D programmes. SSB licensed supplier status is an important document supporting that the project is oriented towards the defence sector and creates a positive effect in assessment processes.
Does software and electronics development also fall within the incentive scope?
Yes. It can be supported with R&D centre or design centre status under Law No. 5746. Embedded software development, electronic system design and critical software infrastructure are assessed within this scope. It is also valid outside techno-parks; an R&D centre to be established within the company's own premises provides the same advantages.
How does TÜBİTAK support work in defence projects?
TÜBİTAK programme 1511 defines defence and security technologies as a priority area. Grant rates vary between 40% and 60%; the budget ceiling is determined according to the scope and nature of the project. Whether the project falls within the priority area scope must be verified before application.
Can R&D and production incentive be received simultaneously?
Yes. Different legislation can be applied to the same company; strategic investment incentive and R&D centre supports can be run together. However, duplicate support cannot be received for the same expenditure item. The types of expenses and support limits covered by each mechanism are evaluated separately; correct structuring is of critical importance.
defence project analysis
Let us assess your defence project.
A sector-specific incentive analysis is carried out by assessing your investment scope, R&D personnel profile and SSB relationship.
Request a MeetingRELATED SERVICES
Advisory services we provide in this sector
STB · Investment Incentive
STB Investment Incentive Applications
Strategic incentive certificate preparation for defence industry investments; maximum tax reduction and social insurance premium support elements.
TÜBİTAK · Support Programmes
TÜBİTAK National Support Programmes
Programme 1511 Priority Areas for defence R&D projects; high budget ceiling and strategic R&D support.
5746 · R&D Centre
R&D Centre Incentives
R&D centre status establishment in defence industry companies; 150% R&D deduction and qualified personnel support.
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Let us assess your defence project
together.
From incentive status to R&D structuring, we build the right structure together for your defence industry investment.