Turkey unveils 10% crypto tax and platform levies

Turkey proposes a 10% crypto profit tax and 0.03% platform levy, with expanded oversight and presidential rate control. The bill aims to regulate and tax the crypto sector.

Turkey has introduced a comprehensive bill to parliament aiming to establish a new tax regime for cryptocurrencies. The proposed legislation sets a 10% quarterly withholding tax on profits from crypto transactions conducted on regulated platforms. This tax applies to both individuals and companies, regardless of their residency status. Additionally, crypto service providers would be required to pay a 0.03% transaction levy on each sale or transfer they process. The bill grants the president the authority to adjust the withholding tax rate between 0% and 20%. For transactions outside licensed platforms, investors must declare profits through annual income statements. The draft law seeks to bring clarity and regulation to the digital asset sector by incorporating crypto earnings into the Income Tax Law and expanding oversight powers for authorities to address illegal activities. If enacted, this would mark Turkey's first comprehensive tax framework for cryptocurrencies, ending the previous tax exemption and increasing state oversight.