Crypto Tax News: Turkey's AK Party Proposes 10% Tax on Crypto Gains

Turkey's ruling AK Party has introduced a draft bill to the parliament on March 2, proposing a 10% withholding tax on cryptocurrency income and gains. This measure is part of a broader economic package aimed at revising income and expenditure tax laws, with potential implementation two months after publication if approved.

The draft legislation mandates that regulated crypto platforms apply a 10% withholding tax on income and gains derived from crypto-asset transactions on a quarterly basis. For individuals and companies, including non-residents, trading outside of these licensed platforms, profits will need to be declared in their annual tax statements. The president holds the authority to adjust this withholding rate, with the flexibility to lower it to 0% or increase it to 20%, contingent on factors such as asset type and holding period. The bill aligns its definitions of crypto assets with existing regulations under Turkey's Capital Markets Law.

In addition to income tax, crypto asset service providers will face a 0.03% transaction levy on sale and transfer transactions they facilitate. This tax will be calculated based on the sale amount or the market value of the assets. Brokers and intermediaries will be responsible for maintaining accurate records, and tax authorities will pursue users for any unpaid amounts if incorrect information is provided. Transactions subject to this service provider levy will be exempt from value-added tax (VAT).

This move by Turkey follows an increase in crypto oversight in recent years, driven partly by high inflation and the depreciation of the Turkish Lira. Data from Chainalysis indicates that Turkey recorded approximately $200 billion in crypto transaction volume in 2025. The proposed bill is currently under review by the Turkish Grand National Assembly as part of broader economic reforms.

Globally, tax authorities are also enhancing their oversight of digital assets. Vietnam has proposed a 0.1% crypto tax, mirroring stock trading rules. In South Africa, the Revenue Service (SARS) has activated the Crypto-Asset Reporting Framework (CARF), which facilitates the automatic exchange of financial information between participating countries to combat tax evasion. Under South Africa's current framework, crypto profits are subject to Capital Gains Tax, with an effective rate potentially reaching up to 18% depending on income brackets. CARF's activation is expected to provide authorities with greater visibility into crypto holdings and cross-border transactions.