Health and Pharmaceuticals
The healthcare sector is an industry that provides the supply of products and services, consisting of both large and small companies. For this reason, we can say that the healthcare sector involves numerous tax-related issues. The healthcare sector includes organizations and individuals that provide direct care to patients, such as hospitals, clinics, doctor practices, pharmacies, long-term care centers, and nursing homes.
Among those who supply products and services to the healthcare industry, there are institutions and individuals that develop products used directly to treat patients, such as pharmaceutical companies and medical device manufacturers. This group also includes companies that provide services such as laboratory providers and medical tests used in diagnosing diseases. Additionally, there are many technology companies offering technological services to the healthcare sector, providing the infrastructure needed by providers to treat patients and keep their data secure.
In Turkey, the pharmaceutical market has been in a growth trend since the early 1990s, and this growth accelerated particularly after the 2001 crisis. During the same years, pharmaceutical companies improved their profitability and turnover. In our country, due to the fact that the products produced in the sector are not consumable items, there was no significant decline in consumption, and the sector was not affected by the crisis.
Turkey’s growing economy and increasingly expanding investment potential have significantly increased the interest of both domestic and international investors in the country in recent years. Investments in the healthcare sector, along with the increase in mergers and acquisitions, have contributed significantly to the progress of the healthcare sector.
Recently, the healthcare sector, which has taken its place among the world’s leading and growing economies, has shown significant development, parallel to the positive support for access to healthcare provided by government policies.
R&D Expenditures in the Pharmaceutical Sector
Technically speaking, R&D refers to laboratory and clinical studies that involve the discovery of new molecules and the development of new formulas and combinations based on existing molecules, aimed at creating value-added equivalent products that offer different treatment options.
The main goal in drug development is to improve human life for the better. Every drug or vaccine developed must result in a therapeutic effect that treats or reduces the symptoms of the disease. For this reason, R&D expenditures are a significant factor.
In the sector, in addition to original drugs, generic drugs are also produced and introduced to the market. These generic counterfeit drugs are products produced and sold after the protection period of the original drugs has expired. Such drugs have the same effects as the original drugs. Generic drugs make up a significant portion of the global pharmaceutical market. Accounting for about a quarter of the world pharmaceutical market, generic drugs have higher production and sales shares in developing markets.
The production and introduction of original drugs into the market result from serious R&D efforts and expenditures by the manufacturers. The original drugs produced by these manufacturers hold a significant share in the budgets of the companies. We have been involved in numerous activities with our expert staff and experienced teams in examining tax incentives and support for R&D expenditures.
Our Services in the Sector
- As VİZYON, with our expertise built on many years of experience and practice in the healthcare and pharmaceutical sectors, some of the services we provide include:
- VAT exemption for machinery and equipment purchases,
- VAT refund for building construction investments,
- Consultancy on tax incentives and support for R&D expenditures,
- Tax consultancy on the exemption for healthcare services provided to foreigners,
- VAT refund consultancy for public-private sector investments based on the Build-Operate-Transfer model,
- Design, development, and auditing of cost accounting systems,
- Specialized situations in corporate tax declarations.
