Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies but has hinted at the possibility of a “very limited” tax on transactions. Treasury and Finance Minister Mehmet Şimşek, speaking in Ankara, mentioned that the government is contemplating a transaction tax on assets, emphasizing the importance of ensuring all areas are taxed for fairness and efficiency. The specific size of this potential tax has not been disclosed.
In 2008, Turkey reduced its tax rate on stock market profits from 10% to 0%. Reports from Bloomberg on June 4 indicated that the country was planning to impose taxes on gains from stock and cryptocurrency trading. Minister Şimşek underscored the necessity of properly taxing all financial income during a meeting over the weekend.
Currently, Turkey lacks specific regulations for taxing cryptocurrencies but is actively working on establishing a legal framework for digital assets. A bill introduced by Turkey’s ruling party on May 16 aims to regulate the crypto market by requiring businesses to obtain licenses and adhere to international standards, including oversight by capital markets boards.
The legislation also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem. This move is in response to concerns raised by the Financial Action Task Force (FATF) and aims to remove Turkey from the regulator’s “gray list.”
Turkey holds a significant position in the global cryptocurrency market, ranking fourth worldwide in estimated trading volume according to data from Chainalysis. The country’s trading volume was estimated at $170 billion in 2023, surpassing the economies of Russia, Canada, Vietnam, Thailand, and Germany.
Since 2021, Turkish crypto holders have been banned from using cryptocurrencies like Bitcoin (BTC) for payments.