Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a potential “very limited” levy on transactions. Treasury and Finance Minister Mehmet Şimşek made the announcement in Ankara during an interview with Bloomberg, stating that the government is considering a transaction tax on assets to ensure fairness and efficiency in taxation.
The country previously reduced its tax rate on stock market profits from 10% to 0% in 2008. Reports surfaced on June 4 that Turkish authorities were planning to tax gains from stock and cryptocurrency trading, with Minister Şimşek emphasizing the importance of properly taxing all financial income during a recent meeting.
While Turkey currently lacks specific regulations for taxing cryptocurrencies, efforts are underway to establish a legal framework for digital assets. A new bill introduced by the 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 bill also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem. These measures are intended to address concerns from 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. With a trading volume of $170 billion in 2023, Turkey has surpassed economies like Russia, Canada, Vietnam, Thailand, and Germany.
Since 2021, Turkish crypto holders have been banned from using cryptocurrencies like Bitcoin (BTC) for payments. The decision to forego taxes on stock and crypto profits reflects a broader shift within the country’s financial landscape, highlighting the complexities surrounding digital assets and taxation.