Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a potential “very limited” levy on transactions, as reported by Bloomberg. Treasury and Finance Minister Mehmet Şimşek mentioned during an interview in Ankara that the government is exploring the idea of a transaction tax on these assets to ensure fairness and efficiency in taxation.
In the past, Turkey had reduced its tax rate on stock market profits from 10% to 0% in 2008. However, recent reports suggested that authorities were planning to impose taxes on gains from stock and cryptocurrency trading in the country. Minister Şimşek emphasized the importance of properly taxing all financial income during a weekend meeting.
While Turkey currently lacks specific regulations for taxing cryptocurrencies, 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. These measures aim to address concerns raised by the Financial Action Task Force (FATF) and remove Turkey from the regulator’s “gray list.”
Despite restrictions on crypto payments since 2021, Turkey has a significant presence in the global cryptocurrency market. Chainalysis data ranks the country fourth worldwide in estimated trading volume, with a trading volume of $170 billion in 2023, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany.
The debate over cryptocurrencies has caused a sudden division among Democrats in Turkey months ahead of the election.