Turkey’s Cryptocurrency Tax Regulation Passed the Committee with a Minor Amendment – Here’s the Latest Update

The tax regulation for the cryptocurrency market in Turkey has passed through the commission and is preparing to be voted on in the General Assembly of Parliament. The new regulation includes significant changes in terms of both transaction tax and the taxation of earnings.

According to the proposal, a transaction tax of three per ten thousand (0.03%) will be levied only on sales and transfer transactions carried out or brokered by crypto asset service providers. While the authority to determine this tax rate is given to the President, the procedures and principles regarding its implementation will be determined by the Ministry of Treasury and Finance.

One of the most notable aspects of the regulation is the taxation of gains from crypto assets. Accordingly, income from the disposal of crypto assets will be classified as “capital gains.”

Related News: Bitcoin Report from Japanese Research Company: "Big Whales Are Selling, Institutions Are Buying" - What Does It Mean?

Article 5 of the proposal stipulates a 10% withholding tax on gains and income derived from crypto assets. For investors trading on domestic platforms under the supervision of the Capital Markets Board (SPK), this withholding tax will be considered the “final tax,” and there will be no obligation to file a tax return. Thus, the taxation process will be automatically handled through the platforms.

In contrast, a different approach will apply to investors trading on foreign or global cryptocurrency platforms that are outside the scope of the Capital Markets Board (SPK) oversight. These investors will be required to declare their earnings themselves through their annual income tax returns. It is stated that the tax rate could reach up to 40% for earnings exceeding 5 million TL.

*This is not investment advice.

Continue Reading: Turkey’s Cryptocurrency Tax Regulation Passed the Committee with a Minor Amendment – Here’s the Latest Update