Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a small transaction fee. Treasury and Finance Minister Mehmet Şimşek mentioned during an interview in Ankara that the government is contemplating a limited tax on transactions involving assets.
“Our goal is to ensure that all areas are taxed to promote fairness and efficiency in taxation,” Şimşek stated, although he did not specify the exact amount of the potential tax. In 2008, Turkey decreased the tax rate on stock market profits from 10% to 0%.
According to Bloomberg, there were reports on June 4 that authorities in Turkey were planning to impose taxes on gains from stock and cryptocurrency trading. Minister Şimşek emphasized the importance of correctly taxing all financial income during a weekend meeting.
Currently, Turkey does not have specific regulations in place for taxing cryptocurrencies. However, efforts are being made to establish a legal framework for digital assets.
On May 16, Turkey’s ruling party introduced a new bill to regulate the crypto market. This bill mandates that crypto businesses obtain licenses and adhere to international standards, including being regulated by capital markets boards.
The legislation also requires revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem. The goal is to address concerns raised by the Financial Action Task Force (FATF) and 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 Chainalysis data. In 2023, the country’s trading volume reached $170 billion, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany.
Since 2021, Turkish crypto holders have been banned from using cryptocurrencies like Bitcoin (BTC) for making payments.