Turkey proposes a 10% income tax on crypto assets and a 0.03% platform transaction tax

According to a report by Reuters, the ruling party in Turkey has submitted a new tax law draft to parliament, proposing a 10% withholding tax on profits from cryptocurrency transactions conducted on compliant platforms, to be withheld and paid quarterly; profits from cryptocurrency transactions conducted outside authorized platforms would need to be reported and taxed annually.

The draft also proposes a 0.03% transaction tax on cryptocurrency service providers, applicable to sales and transfer transactions they facilitate or conduct directly. In recent years, due to high inflation and the depreciation of the lira, the use and trading volume of cryptocurrency in Turkey have rapidly increased, with annual trading volume approaching $200 billion by 2025.