Turkey Proposes 10% Tax on Crypto Income and Gains

Turkey's ruling Justice and Development Party has proposed a draft bill to impose a 10 percent withholding tax on cryptocurrency income and gains, aiming to regulate the rapidly growing digital asset sector amid economic challenges. The legislation, presented to the Grand National Assembly on Monday, would amend the country's income and expenditure tax laws to establish clear rules for platforms and investors.

Under the proposal, cryptocurrency platforms regulated under Turkey's Capital Markets Law would be required to withhold the 10 percent tax on quarterly basis for gains and income from crypto transactions. This obligation applies equally to individuals, companies, residents, and non-residents, regardless of existing tax exemptions or statuses. Investors using licensed platforms would not need to file separate annual declarations for income already subject to withholding. However, transactions conducted outside authorized platforms would require reporting through annual income tax filings. The bill specifies that losses from crypto trading can only offset gains from the same type of asset within the same calendar year.

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