The Turkish Government, led by the ruling AK Party, has formally submitted a comprehensive economic bill to the Grand National Assembly aimed at integrating digital assets into the national fiscal system. According to reports from the state-run Anadolu Ajansı, the draft legislation proposes significant amendments to both the Income Tax Law and the Expenditure Taxes Law. This move is designed to create a structured regulatory environment for cryptocurrencies, bringing them under the same legal definitions of “crypto asset,” “wallet,” and “platform” already established within the country’s Capital Markets Law.
Under the proposed regime, cryptocurrency platforms regulated by national law would be required to implement a 10% withholding tax on gains each quarter. This tax mandate is broad in scope, applying to all investors regardless of their status as an individual or a corporation, or whether they are residents or non-residents of Turkey. In addition to the tax on gains, service providers would be subject to a 0.03% transaction tax based on the total sale amount or market value of the crypto assets they broker, representing a shift toward taxing the service side of the digital economy.
The legislation places a heavy emphasis on compliance and the accuracy of financial records. Crypto brokers and intermediaries will be held responsible for conducting tax checks based on their internal documentation. The bill stipulates that if a user provides incorrect or incomplete information to avoid their tax obligations, authorities will have the legal standing to pursue that specific individual for any resulting shortfall. This ensures that the burden of accuracy remains with the participant while the broker acts as the primary gatekeeper for the state.
A notable feature of the bill is the flexibility granted to the Presidency regarding tax rates. The President would have the executive authority to adjust the 10% withholding tax, with the power to lower it to 0% or raise it as high as 20%. These adjustments could be based on several variables, including the specific type of token, the duration for which the asset was held, the entity that issued the token, or the specific type of wallet utilized by the investor. This allows the government to remain agile in a rapidly evolving technological market.
To streamline the new fiscal rules, the bill ensures that crypto deliveries already subject to the transaction tax are exempt from Value-Added Tax (VAT). Beyond the scope of digital finance, the broader economic package also touches on other sectors, such as removing corporate tax exemptions for foundation university hospitals starting in 2027. Should the bill receive parliamentary approval and be published in the Official Gazette, the new cryptocurrency provisions are slated to take effect following a two-month transition period.
