Turkey Considers Minimal Transaction Tax Over Profits from Stocks and Crypto
Summary:
Turkey has rejected proposals to tax gains from stocks and crypto investments, instead considering a minimal transaction tax. Specifically, it plans to ensure full taxation to provide fairness. Despite lack of current specific regulations for crypto tax, Turkey is building a legal framework for these digital assets. The country’s 2023 trading volume was around $170 billion, ranking fourth globally. Legislation has been proposed to regulate the crypto market, with licensing requirements and local restrictions on foreign brokers.
Turkey has rejected proposals to tax gains from stock and cryptocurrency investments, but proposed a minimal tax on transactions instead. Treasury and Finance Minister Mehmet Simsek, in an Ankara-based interview as reported by Bloomberg, stated the government was contemplating a minor transaction tax on these assets. Remaining non-specific about its potential amount, Simsek asserted that the government's intent was to ensure every domain is taxed adequately, to foster fairness and efficiency in taxation. In 2008, Turkey brought down its tax rate on profits from shares from 10% to none.
Bloomberg previously reported on June 4 that Turkish authorities were planning to tax profits from stocks and cryptocurrency transactions. Over a recent weekend meeting, Minister Simsek highlighted the necessity to aptly tax all financial gains. Presently, Turkey lacks peculiar regulations to tax cryptocurrencies but is actively working on the construction of a legal framework for digital assets.
On May 16, Turkey's governing party proposed a new legislation to regulate the crypto market, which mandates crypto businesses to be licensed and compliant with international standards, such as being supervised by capital market boards. The bill also enacts obligatory revenue collection from crypto service providers and restricts foreign crypto brokers to cultivate a locally regulated environment.
The intention behind this move, as per local media reports, is to address concerns raised by the Financial Action Task Force (FATF) and to remove Turkey from the regulator's 'gray list'. Turkey holds a considerable position in the global cryptocurrency market, standing as the fourth largest in the estimated trading volume as per Chainanalysis data. The trading volume of the nation was approximated at $170 billion in 2023, exceeding economies such as Russia, Canada, Vietnam, Thailand, and Germany. Since 2021, Turkish cryptocurrency holders have been banned from making payments with cryptocurrencies like Bitcoin (BTC).
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Published At
6/5/2024 9:00:00 PM
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