Crypto exchanges face new obligations as authorities target unregulated earnings and reporting gaps.
Today, 48 members of Turkey’s ruling AK Party introduced a landmark bill that brings cryptocurrency transactions under the country’s tax laws for the first time. Drawing immediate attention for its comprehensive scope, the proposed legislation marks the boldest formal step yet in Turkey’s approach to taxing digital assets. Below, we delve into the details of the proposal and its potential implications for the Turkish crypto landscape.
The Motivation Behind the Bill
The preamble to the draft law explicitly cites the need to regulate previously untaxed areas. While the focus has long been on the impending taxation of crypto assets — a move that has unsettled many investors — lawmakers now seem determined to fill regulatory gaps and address concerns about transparency, accountability, and tax revenue within the digital currency sector.
ContentsThe Motivation Behind the BillHow Crypto Taxation Will WorkWhen Will the New Crypto Taxes Come Into Effect?How Crypto Taxation Will Work
Parliament members Hüseyin Altınsoy of Aksaray and Ejder Açıkkapı of Elazığ spearheaded the proposal, which covers topics ranging from advertising for private universities to sports betting, rather than being exclusively dedicated to cryptocurrency. Nevertheless, its taxation provisions stand out, as the bill has already been dispatched to four parliamentary commissions, including Planning and Budget, with floor debate expected to follow. If passed, it would represent Turkey’s first comprehensive tax regime for crypto assets.
Under the draft law, cryptocurrency earnings will be incorporated into Article 70 of the Income Tax Law. This means that gains from trading, rental, interest, and other income derived from crypto assets on platforms authorized by the Capital Markets Board (SPK) will be subject to a new withholding tax. Transactions conducted off-platform, however, must be self-declared for annual income tax purposes.
The bill makes it possible to tax trading profits and income such as rent or interest from crypto assets on SPK-licensed platforms via withholding, while profits from transactions outside such platforms will be taxed through self-declaration. This system applies to individuals and institutions alike, without regard to their residency or tax exempt status — the withholding will serve as the final tax for natural persons and non-resident institutions, except those already registered for commercial gain, the draft text specifies.
The bill further designates gains from the disposal of crypto assets as taxable capital gains, and for companies, as commercial income. The law specifies that any future wording required to classify such disposals accordingly will be inserted into the statute.
To facilitate the collection of crypto taxes, the “Accommodation Tax” section of Law No. 6802 will be renamed to include a “Cryptocurrency Transaction Tax.” Crypto service providers will be responsible for imposing and paying this tax on crypto sales and transfer transactions. Key elements of the new framework include:
Crypto service providers are designated as the taxpayers.A transaction tax of 0.03% will be applied to the sales price or fair value at the time of transfer.No deductions under the guise of expenses or additional taxes can be made from the tax base.Each month’s tax must be declared and paid by the fifteenth of the following month to the designated tax office of the payer.
For transactions conducted outside SPK-authorized exchanges, gains must be reported through annual tax returns. Losses from crypto transactions may only be offset against other crypto gains within the same fiscal year. Moreover, Turkish crypto exchanges will be required to withhold 10% of gains from crypto activities on a quarterly basis.
This effectively introduces two separate taxes on crypto transactions in Turkey:
An ultra-low 0.03% transaction tax for each sale, purchase, and transfer of crypto assets.A quarterly 10% withholding on crypto gains.
Offsetting losses is permitted only within the same tax year, while the 10% withholding rate comes as a surprise, being far steeper than anticipated. This provision is likely to disappoint many in Turkey’s crypto community, who had hoped for a more modest levy.
When Will the New Crypto Taxes Come Into Effect?
According to the bill, the new transaction tax and the 10% withholding on gains will take effect from the second month after publication in the Official Gazette. The bill will be first reviewed by the principal Planning and Budget Commission and other relevant commissions, where further amendments may be made. Although there is a slim chance of the rate being adjusted, time allocated specifically for crypto may be limited, as this bill forms part of a larger legislative package.
Once the commission phase is over, the finalized text will be put before the General Assembly of the Grand National Assembly (TBMM) for article-by-article voting. If passed, it then goes to the President for signature and is subsequently published in the Official Gazette. The law could be enacted in the Spring or Summer parliamentary sessions of 2026. Should it be published by March or April 2026, collection of crypto taxes would likely begin by June or July due to the “second month after publication” stipulation.
Critically, the bill clarifies that taxes will only apply to transactions performed after the law takes effect. Article 18 clearly states tax liability will commence from the second month after publication, ensuring that any profits made before enactment remain untaxed. The principle of non-retroactivity is foundational in Turkish tax law, so current individual investors remain under exemption until the new law comes into force. As reiterated at the outset, the real purpose of the bill is to bring previously untaxed areas within the tax system.
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