Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a potential small levy on transactions.
Treasury and Finance Minister Mehmet Şimşek, in an interview in Ankara as reported by Bloomberg, mentioned that the government is contemplating a limited transaction tax on these assets. “Our goal is to ensure fairness and efficiency in taxation by covering all areas,” Şimşek stated, without specifying the exact size of the potential tax. In 2008, Turkey had reduced its tax rate on stock market profits from 10% to 0%.
Bloomberg had initially reported on June 4 about the country’s plans to tax gains from stock and cryptocurrency trading. During a recent meeting, Minister Şimşek emphasized the importance of properly taxing all financial income.
Turkey currently lacks specific regulations for taxing cryptocurrencies, but efforts are underway to establish a legal framework for digital assets. A new bill introduced by Turkey’s ruling party on May 16 aims to regulate the crypto market. This bill mandates licenses for crypto businesses, adherence to international standards, and oversight by capital markets boards.
The legislation also requires revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated environment. 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 trading volume according to Chainalysis data. The country’s trading volume reached $170 billion in 2023, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany.
Since 2021, Turkish crypto holders have been unable to use cryptocurrencies like Bitcoin (BTC) for payments. The crypto industry is causing a split among Democrats in Turkey months before the upcoming election.