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Turkey's 10% Crypto Tax Proposal Marks a New Chapter for Investors

Turkey’s ruling AK Party has introduced a significant economic bill aimed at formalizing cryptocurrency taxation.

This legislation is now under consideration by the Turkish Grand National Assembly and seeks to amend both the Income Tax Law and Expenditure Taxes Law.

Notably, the bill proposes a 10% withholding tax on gains from cryptocurrency transactions, applicable to both individual and corporate investors.

Crypto service providers will also be required to pay a transaction tax set at 0.03% based on the sale amount or market value of the crypto assets they broker.

To enforce compliance, intermediaries like crypto brokers will be responsible for maintaining accurate transaction records that tax authorities can review.

The bill clarifies that key terms related to cryptocurrencies will align with existing regulations defined in Turkey’s Capital Markets Law.

Crucially, the Turkish president will have the discretion to adjust the withholding tax rate between 0% and 20% based on various factors, including the type and duration of the cryptocurrency held.

Additionally, transactions subject to the new tax will be exempt from value-added tax (VAT), providing some relief to crypto investors.

If approved, these provisions will take effect two months after publication in the official gazette, bringing Turkish crypto taxation into a new era.

This comprehensive framework aims to regulate Turkey’s fast-growing cryptocurrency market while ensuring fiscal accountability.