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Turkey Tables Crypto Tax Bill With 10% Withholding, 0.03% Transaction Levy

The plan gives the president flexibility to adjust rates, with provisions kicking in two months after publication if approved.

Overview

  • AK Party lawmakers submitted a draft to the Grand National Assembly to formalize crypto taxation by amending income and expenditure tax laws and aligning definitions with the Capital Markets Law.
  • Regulated platforms would withhold a 10% tax on quarterly gains for all users, while trades conducted off licensed platforms would remain reportable in annual filings.
  • Service providers would owe a 0.03% tax on the sale amount or market value of assets they broker, with returns and payment due by the 15th day of the following month.
  • The president could set the withholding rate anywhere from 0% to 20% based on asset type, holding period, issuer or wallet, with detailed rules to be issued by the Treasury and Finance Ministry.
  • Compliance measures include FIFO cost-basis for partial sales, aggregated withholding calculations per period, reporting of withheld taxes by the 26th of the next month, record-based tax checks with potential intermediary liability, a VAT exemption for taxed crypto deliveries, and an effective date two months after publication if enacted.