Turkey will not tax cryptocurrency profits

Turkey has decided not to tax profits from stocks and cryptocurrencies, but is exploring the idea of ​​a "very limited" transaction tax.

Това development was shared by Treasury and Finance Minister Mehmet Simsek during an interview in Ankara.

Simsek mentioned that the government aims to ensure fairness and efficiency in taxation, leaving no area untaxed. He did not specify the exact amount of the potential transaction tax. It should be noted that Turkey had previously reduced its tax on stock market profits from 10% to 0% in 2008.

Recent reports suggest that Turkish authorities are considering a tax on profits from trading stocks and cryptocurrency. Minister Šimšek emphasized the importance of proper taxation of all financial income during a recent meeting.

Turkey currently lacks specific cryptocurrency taxation regulations, but efforts are being made to create a legal framework for digital assets. On May 16, Turkey's ruling party introduced a new bill to regulate the crypto market, requiring crypto businesses to obtain a license and adhere to international standards set by capital markets boards.

The proposed legislation also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers from maintaining a locally regulated ecosystem. The move aims to address the concerns of the Financial Action Task Force (FATF) and remove Turkey from the regulator's "grey list".

Turkey is prominent in the global cryptocurrency market, ranking fourth in the world by estimated trade volume of $170 billion in 2023, ahead of countries such as Russia, Canada and Germany.

As of 2021, Turkish citizens who own crypto are prohibited from using cryptocurrencies such as Bitcoin for payments.