Back

Turkey Proposes 10% Tax on Crypto Trading Gains in New Bill

Turkey's ruling AK Party introduces a draft bill that aims to formalize crypto taxation, introducing a 10% withholding tax on gains and a 0.03% transaction tax for service providers.

Summary

Turkey’s ruling AK Party has introduced a draft bill proposing a 10% withholding tax on crypto asset gains from regulated platforms and a 0.03% transaction tax on crypto service providers. The bill also includes provisions for taxing investors on non-compliant platforms, with the possibility for the president to adjust rates between 0% and 20%. The taxes would take effect two months after approval.

Terms & Concepts
  • Withholding tax: A tax deducted at the source when income or profits are earned, often used to ensure compliance and streamline collection.
  • Crypto service providers: Businesses offering cryptocurrency-related services, including exchanges, wallet operators, and payment platforms.
  • Transaction tax: A small percentage fee applied to financial trades or transfers, typically used to generate government revenue.