The Turkish government will now tax crypto gains as capital market assets. This step brings digital currencies under a regulatory structure and will enhance compliance, control and transparency. Additionally, transactions on crypto assets that pay the new tax will be exempt from the value-added tax (VAT).
Under the proposed framework, crypto platforms regulated under Turkey’s Capital Markets Law would be required to withhold a 10% tax on investors’ realized profits every quarter. The draft bill submitted to Turkey’s Grand National Assembly proposes sweeping changes to the taxation of digital assets.
The legislation would amend the Income Tax Law and the Expenditure Taxes Law, aiming to formally integrate the crypto market into the country’s capital markets framework while strengthening fiscal oversight of the sector.
The draft law also includes broader fiscal reforms, including the removal of certain corporate tax exemptions for foundation-run university hospitals starting in 2027.
The obligation would apply regardless of whether the investor is an individual or a legal entity, and irrespective of residency status. Responsibility for collecting and remitting the tax would shift to the platforms themselves, effectively positioning them as tax intermediaries.
In addition to the profit-based levy, crypto service providers would be subject to a 0.03% tax on the sales value or market price of each crypto asset transaction.
Unlike the withholding tax on gains, this transaction-based levy would apply regardless of whether a trade results in profit. The structure introduces a dual-layer taxation model, one targeting net gains and another targeting trading volume.
The President of Turkey would be authorized to reduce the withholding rate from 10% to as low as 0% or increase it up to 20%, depending on factors including token classification, holding period, issuer characteristics, or wallet type.
Authorities aim to increase compliance and reduce the potential for underreporting income derived from digital asset trading. "Such plans for taxes risk doing more harm than good at this stage," said Bora Erdamar, director of the BlockchainIST Center.
"These tax plans could push users away from local platforms and slow the growth of the market. These measures may be appropriate once the sector is mature, but for now, I think it is too early," Erdamar said.
The legislation also clarifies that definitions such as “crypto asset,” “crypto wallet,” and “platform” will mirror those established under the Capital Markets Law, ensuring consistency between financial and tax regulation.
Turkey ranks among the world's leaders in crypto adoption and annual transaction volumes, reaching nearly $200 billion in 2025, far surpassing other markets in the region, US-based blockchain research company Chainalysis said in a report.
VAT Exemption and Additional Fiscal Measures
If approved, the new crypto taxation regime would enter into force two months after its official publication.
Turkish authorities have steadily tightened oversight of platforms as cryptocurrency use in Turkey surged in recent years, driven largely by high inflation and the lira's depreciation.