Cryptocurrency Tax is Coming: How Much Will the Rate Be?

The government has proposed the biggest tax overhaul in recent years by imposing new taxes on companies. This is an effort to replenish funds vacated by last year’s devastating earthquakes. Although it aims to increase revenues, high taxes worry investors. Some investors even shift their investments to cryptocurrencies to reduce their tax burden. The reforms aim to improve Turkey’s post-disaster financial situation. However, too high taxes also bring the risk of losing investments.

Financial impacts and legislative details of cryptocurrency tax

cryptokoin.com As you’ve been following from , regulatory pressure on cryptocurrencies is increasing around the world. One side of these regulations is tax. Indeed, Türkiye is also taking some steps in this direction. In this context, the government is preparing to significantly shake up the country’s tax system. According to sources, authorities are preparing a new tax law to be discussed in parliament at the end of this month. We’re not just talking about minor changes here. It would be the most comprehensive overhaul of Turkey’s tax code since taxes were raised to finance recovery efforts after the 1999 earthquake.

It is anticipated that the new measures will bring 226 billion lira of additional income to the state coffers. This means approximately 7 billion dollars. In other words, it corresponds to 0.7% of Turkey’s GDP. It’s a valuable revenue boost that officials see as critical to reviving the country’s economic recovery. One of the most attractive offers targets the rapidly growing cryptocurrency market in Turkey. The ever-weakening Turkish lira and rising inflation have recently directed many investors to digital assets. According to sources, the government wants to impose a 0.03% process tax on cryptocurrency trading. Authorities estimate that this crypto tax will bring annual revenue of 3.7 billion lira.

Political outlook and future implications

These tax reforms indicate Turkey’s determination to regulate fiscal policy amid economic turmoil. But with such big changes on the table, it is certain that the debates in parliament will be heated in the coming weeks. The government led by President Recep Tayyip Erdoğan’s party is trying to introduce some controversial new tax articles. Thanks to their majority in the parliament, it is not a big problem for them to pass these if they want. However, the government had to step back from part of the plan after it attracted great reaction.

Minister of Treasury and Finance Mehmet Şimşek announced that they would initially impose a tax on share buying and selling processes. But traders and investors quickly objected. As part of their objection, they claimed that this move would increase costs and kill market activities. Faced with this heated opposition, the government postponed the idea of ​​a stock trading tax for now. Although it abandoned the stock tax, the government did not give up on taxing cryptocurrency transactions. They have proposed a tax on cryptocurrency trading as part of a broader effort to more tightly regulate the crypto industry. They even put forward a draft law that would require crypto firms to be licensed and registered.