Turkish Governing Party Introduces Proposal for 10% Tax on Cryptocurrency Earnings
The legislative proposal would grant Turkey's president authority to adjust digital asset income tax rates within a range of zero to 20 percent.
The Justice and Development Party of Turkey has put forward a legislative proposal to implement a 10% taxation rate on earnings and gains from cryptocurrency as part of broader amendments to the nation's taxation framework.
Based on a report published Monday by Anadolu Agency, the state-operated news service, Turkish Grand National Assembly legislators have proposed modifications to the nation's expenditure tax legislation that would incorporate a 10% levy on digital assets. The legislation would require platforms subject to capital gains taxation within Turkey to withhold 10% tax on profits and earnings generated from cryptocurrency transactions every three months.
Under the proposed legislation, the Turkish president would gain authority to modify the cryptocurrency tax rate anywhere between 0% and 20%, while service providers would face a 0.03% transaction tax on the transactions they enable. Implementation of regulations and enforcement of the bill would fall under the jurisdiction of the national treasury, with the legislation anticipated to become effective two months following its publication if it successfully passes into law.
According to a Chainalysis report released in October, Turkey ranked first in the Middle East and North Africa region for cryptocurrency transaction volumes, recording $200 billion between July 2024 and June 2025. The nation, which is part of the G-20, experienced inflation that reached a high of 85% in October 2022 before decreasing to approximately 30% by January of this year, based on Trading Economics data.
[Turkey] presents one of MENA's most compelling cryptocurrency stories — its large volumes may be explained by increasingly speculative behavior rather than sustainable adoption. The country's challenging economic circumstances seem to have driven substantial adoption of crypto for economic necessity, as an alternative financial infrastructure, and as a form of investment to escape financial hardship.
Chainalysis, October 2024
The latest nation to explore significant higher crypto taxes
During February, a proposal to establish a 36% capital gains tax on savings and the majority of liquid investments, including digital assets, was moved forward by the Netherlands' House of Representatives.
The proposed law, which remains pending approval in the nation's Senate, has the potential to become effective in 2028 should it receive passage. Nevertheless, reporting from the previous week indicated that the finance minister of the Netherlands was giving consideration to modifying the proposed bill.