Turkey’s ruling AK Party has unveiled a comprehensive economic bill aimed at establishing a formal taxation system for cryptocurrencies. This proposal, currently under consideration by the Turkish Grand National Assembly, seeks to amend existing tax laws to integrate a new framework for digital assets.
According to reports from the state news agency Anadolu Ajansı, the draft legislation introduces a 10% withholding tax on profits generated from regulated crypto platforms. This tax will be applied quarterly to all investors, whether they are individuals or companies, and regardless of their residency status.
In addition to the withholding tax, service providers engaged in cryptocurrency transactions will incur a 0.03% transaction tax based on the sale amount or market value of the crypto assets they facilitate. Crypto brokers and intermediaries will be responsible for maintaining accurate tax records, and any discrepancies in user-provided information could lead to tax authorities pursuing the individual for any owed amounts.
The proposed bill clarifies that terms like “crypto asset,” “wallet,” and “platform” will align with definitions set forth in Turkey’s Capital Markets Law, thereby linking the new tax regulations to existing financial legislation. Furthermore, the president will have the authority to adjust the withholding tax rate between 0% and 20%, depending on various factors such as the token type, duration of holding, issuer, or wallet type.
Notably, the legislation also exempts crypto transactions from value-added tax (VAT) and specifies that foundation university hospitals will no longer benefit from corporate tax exemptions starting in 2027. If approved, the crypto tax provisions will take effect two months after their publication.
Turkey's AK Party has proposed a new economic bill to formalize cryptocurrency taxation, introducing a 10% withholding tax on gains and a transaction tax for service providers. The bill aims to align crypto regulations with existing financial laws and grants the president authority to adjust tax rates.