Key Takeaways
The legislation would amend the Income Tax Law and the Expenditure Taxes Law, aiming to formally integrate the crypto market into the country’s capital markets framework while strengthening fiscal oversight of the sector.
Under the proposed framework, crypto platforms regulated under Turkey’s Capital Markets Law would be required to withhold a 10% tax on investors’ realized profits on a quarterly basis.
The obligation would apply regardless of whether the investor is an individual or a legal entity, and irrespective of residency status. Responsibility for collecting and remitting the tax would shift to the platforms themselves, effectively positioning them as tax intermediaries. Authorities aim to increase compliance and reduce the potential for underreporting income derived from digital asset trading.
In addition to the profit-based levy, crypto service providers would be subject to a 0.03% tax on the sales value or market price of each crypto asset transaction.
Unlike the withholding tax on gains, this transaction-based levy would apply regardless of whether a trade results in profit. The structure introduces a dual-layer taxation model — one targeting net gains and another targeting trading volume.
The draft bill grants crypto brokers and intermediaries responsibility for maintaining records that may be used in tax audits. If users provide incomplete or inaccurate information, tax authorities would retain the right to pursue outstanding liabilities directly from them.
The legislation also clarifies that definitions such as “crypto asset,” “crypto wallet,” and “platform” will mirror those established under the Capital Markets Law, ensuring consistency between financial and tax regulation.
The President of Turkey would be authorized to reduce the withholding rate from 10% to as low as 0% or increase it up to 20%, depending on factors including token classification, holding period, issuer characteristics, or wallet type.
Crypto asset deliveries subject to the transaction tax would be exempt from value-added tax (VAT), according to the proposal.
The draft law also includes broader fiscal reforms, including the removal of certain corporate tax exemptions for foundation-run university hospitals starting in 2027.
If approved, the new crypto taxation regime would enter into force two months after its official publication.
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