Details Of Cryptocurrency Taxation In Turkey Are Being Finalized.

Turkey is implementing a 0.03% tax on cryptocurrency transactions as part of a comprehensive financial reform to address the budget deficit caused by recent earthquakes.

Turkey is preparing to introduce a 0.03% transaction tax on cryptocurrency trades and other regulations to Parliament as part of a comprehensive financial reform. This move aims to address the budget deficit caused by last year's earthquakes and signifies a shift in the country's approach to financial transactions.

According to a report by Bloomberg, the transaction tax on cryptocurrency trades could significantly help the government close its budget gap. The report states, "The ministry is considering a 0.03% transaction tax on crypto trades, which have become popular among individual Turkish investors seeking protection against the lira's depreciation and rising inflation. Official estimates suggest this move could generate 3.7 billion lira annually."

Expected Revenue from the Tax Reform

The Turkish government expects the tax reforms it plans to legislate to generate 226 billion lira ($7 billion) in revenue. These new taxes are projected to contribute approximately 0.7% to the country's GDP. Under the leadership of Mehmet Şimşek, the Ministry of Treasury and Finance has prepared a bill to be discussed in Parliament by the end of June.

Tax on Cryptocurrency Transactions

The 0.03% transaction tax initiative aims to capitalize on the growing popularity of cryptocurrency trading among Turkish investors seeking to hedge against inflation and currency depreciation. These reforms represent one of the most significant tax changes in Turkey in the past two decades.

Government's Determination

Although plans to tax crypto and stock gains were previously abandoned, the government is now determined to proceed. On June 5, Şimşek stated that Turkey aims to "leave no area untaxed to ensure tax justice." The law aiming to tax cryptocurrency transactions is expected to pass in Parliament, implementing the new 0.03% transaction tax.