Turkey’s ruling AK Party has introduced a sweeping economic bill in parliament that would formalize crypto taxation while revising a number of tax and spending rules.
The draft, now submitted to Turkey’s Grand National Assembly, will amend the Income Tax and Expenditure Tax Law to create a new framework for cryptocurrencies, the country’s state news agency Anadolu Ajansı reports.
Crypto platforms regulated under the country’s capital market law will withhold a 10% tax on gains every quarter, regardless of whether the investor is an individual or company, resident or non-resident.
Service providers will also pay a transaction tax of 0.03% of the sale amount or market value of cryptoassets they broker.
Crypto brokers and other intermediaries would be on the hook for tax audits based on the records they keep. If a user provides incorrect or incomplete information, the tax authorities would pursue that person for any deficiency, writes the news outlet.
The bill also makes clear that key terms such as “crypto-asset”, “wallet” and “platform” have the same meaning as in Turkey’s Capital Markets Law, tying the tax regime to existing financial regulations.
The country’s president would also have the power to lower the 10% withholding tax to 0% or raise it to 20%, depending on the type of token, how long it was held, who issued it, or the type of wallet used.
The bill exempts crypto supplies subject to transaction tax from value added tax (VAT) and excludes founding university hospitals from corporate tax exemptions starting in 2027.
The crypto regulations will enter into force two months after publication, if approved.
