Turkey decides against taxing crypto profits this year

Vice President Cevdet Yılmaz confirmed that Turkey will not impose taxes on profits from cryptocurrency and stock trading this year.

The government has previously considered such a tax but has focused on reducing existing tax exemptions, Bloomberg reported. The decision marks a key moment for investors in Turkey’s financial markets by clarifying the government’s stance.

Consideration of imposing taxes on crypto and stock profits was initially postponed in June after the Turkish stock market plunged. According to Bloomberg, the government aims to improve current tax rules instead, with an emphasis on “narrowing” tax exemptions.

Turkey’s profit tax decision

For those unfamiliar with crypto earnings and taxes, this means that when people trade cryptocurrencies — like Bitcoin (BTC) — or stocks, they typically make a profit. In many countries, governments tax these profits as income, just like they would regular income.

In Turkey, the government has decided not to collect taxes on cryptocurrency and stock profits, at least for now.

Cryptocurrency investors are often critical of the idea of ​​taxing profits, as many investors use the stock market to protect their money from inflation.

Earlier this year, India left crypto tax rules unchanged for the 2024/25 budget despite industry demands for lower rates. The current 1% rate, introduced in 2022, has significantly reduced crypto trading volumes.

Many countries, including the United Kingdom and Japan, are considering how to tax cryptocurrencies. Crypto trading is still relatively new, and many governments are trying to figure out how to regulate and tax these digital assets.

The decision not to tax cryptocurrency and stock profits provides temporary relief to investors and paves the way for Turkey’s changing economic policies in the coming year.