Turkey has decided against implementing taxes on profits made from stocks and cryptocurrencies, opting instead for a small levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed during an interview in Ankara that the government is contemplating a limited transaction tax on these assets. The goal, according to Şimşek, is to ensure fairness and efficiency in taxation across all sectors.
In 2008, Turkey slashed its tax rate on stock market profits from 10% to 0%. However, recent reports suggested that the country was planning to impose a tax on gains from stock and cryptocurrency trading. Minister Şimşek emphasized the importance of properly taxing all financial income during a meeting over the weekend.
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, 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 is in response to concerns raised by the Financial Action Task Force (FATF) and aims to remove Turkey from the regulator’s “gray list.”
Despite restrictions on cryptocurrency payments since 2021, Turkey remains a major player in the global market, ranking fourth in estimated 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.
Overall, the crypto industry in Turkey has sparked a division among Democrats ahead of the upcoming elections.