Turkey has decided not to implement taxes on profits from stocks and cryptocurrencies, but is considering a minor levy on transactions, as reported by Bloomberg. 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 main goal, according to Şimşek, is to ensure fairness and efficiency in taxation by covering all sectors.
In 2008, Turkey reduced its tax rate on stock market profits from 10% to 0%. However, recent reports from Bloomberg suggested that the country was planning to impose taxes on gains from stock and cryptocurrency trading. Minister Şimşek emphasized the necessity of properly taxing all financial income during a meeting over the weekend.
Currently, Turkey does not have specific regulations for taxing cryptocurrencies. Nevertheless, efforts are being made to establish a legal framework for digital assets. The ruling party introduced a new 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 initiative 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 worldwide in estimated trading volume based on Chainalysis data. The country’s trading volume reached $170 billion in 2023, 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. This move has revealed a sudden divide among Democrats just months before the upcoming election.