Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, instead proposing a minimal levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed this during an interview in Ankara, stating that the government is considering a limited transaction tax on these assets. He emphasized the need to ensure fairness and efficiency in taxation by covering all areas, without specifying the exact size of the tax.
In 2008, Turkey reduced the tax rate on stock market profits from 10% to 0%. Recent reports from Bloomberg suggested that Turkish authorities were planning to tax gains from stock and cryptocurrency trading. Minister Şimşek highlighted the importance of properly taxing all financial income during a weekend meeting.
Currently, Turkey does not have specific regulations in place for taxing cryptocurrencies, but efforts are underway to establish a legal framework for digital assets. The ruling party introduced a bill on May 16 to regulate the crypto market, requiring businesses to obtain licenses and adhere to international standards set 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. This move aims 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 in estimated trading volume according to Chainalysis data. The country’s trading volume in 2023 was estimated at $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 payments.
The discussion around crypto has caused a sudden divide among Democrats in Turkey, months ahead of the election.