Matters to be Considered in Inflation Adjustment and Deduction of Research, Development and Design Expenditures

Research, development, innovation and de - sign activities carried out in our country for vario- us purposes such as competing in the internatio- nal arena, achieving the desired economic growth rate and ensuring its sustainability, producing, designing and marketing new knowledge and technologies, attracting foreign capital, getting rid of technological dependence, increasing producti- vity and profitability, ensuring the effective use of resources are financially supported by our state. However, the direct capitalization or expensing of research, development and design expenditures in the accounting records also affects whether these expenditures will be subject to inflation ad- justment and the amount of R&D and design de - ductions to be deducted by taxpayers from their declarations. This study provides explanatory information on the inflation adjustment of research, develop- ment and design expenditures and how much of the amounts arising from the adjustment can be deducted by income or corporate taxpayers thro- ugh their declarations.