Turkey's Cryptocurrency Tax Bill Clears Committee, Heads to Parliament for Vote

Turkey's proposed tax framework for the cryptocurrency market has advanced out of committee and is set to be taken up in the Grand National Assembly's General Assembly. The draft introduces changes covering both transaction-based taxation and the treatment of crypto-related profits. Under the proposal, a transaction tax of three per ten thousand (0.03%) would apply only to sale and transfer transactions executed or intermediated by crypto asset service providers. The President would be authorized to set the rate, while the Ministry of Treasury and Finance would define the implementation rules and procedures. A key element is the classification of profits from crypto assets. Income generated from the disposal of crypto assets would be treated as "capital gains." Article 5 includes a 10% withholding tax on gains and income derived from crypto assets. For investors using domestic platforms overseen by the Capital Markets Board (SPK), the withholding would be deemed a final tax, removing any requirement to file a tax return. In practice, taxation would be handled automatically through the platforms. Investors trading on foreign or global crypto platforms outside SPK oversight would face a different regime and would need to declare their earnings via annual income tax filings. The proposal notes that the effective tax rate could rise to as much as 40% for earnings exceeding 5 million TL. This is not investment advice.