Turkey Weighs New Crypto Tax Regime as TÜRMOB Flags Legal and Technical Gaps

Turkey’s Grand National Assembly (TBMM) is set to take up a wide-ranging economic adjustment bill in the week beginning Tuesday, March 24, with crypto taxation emerging as a central item. Transaction tax: 3 per mille An amendment adopted on March 5 by the Committee on Planning and Budget would impose a transaction tax on the sale and transfer of crypto assets executed via crypto asset service providers. The proposal sets the levy at 3 per mille (‰3), calculated on the transaction amount or, for transfers, the market value at the time of transfer. Policymakers say the measure is intended to curb informal activity and boost transparency in the crypto market. Profit tax: 10% on gains Beyond transaction levies, the draft also targets investment income. Under the proposal, profits earned by investors would be subject to a 10% income tax. The move is viewed as a key step in establishing a long-discussed taxation framework for the sector. TÜRMOB warnings: ambiguity and implementation risk The Union of Chambers of Certified Public Accountants and Financial Advisors of Turkey (TÜRMOB) said the current text leaves critical points unclear, raising the risk of operational and compliance disputes. TÜRMOB highlighted the following issues: - Profit-and-loss netting: how results will be calculated across different platforms remains undefined. - Cross-platform activity: the lack of exemptions could raise costs. - VAT exposure: whether platform fees fall under VAT is not specified. - Domestic vs. international treatment: differences in withholding and reporting could distort competition. - Missing definition: the term "same type of crypto asset" is not clearly defined. - Transition rules: there are no adjustments for existing holdings. Constitutional concern TÜRMOB also warned that granting broad discretion over tax rates and enforcement could conflict with the principle of the legality of taxation, increasing the likelihood of future legal challenges. Market impact Analysts say the proposal signals a push to bring crypto into a formal regulatory and tax framework, but stress that unresolved implementation details could create significant friction for investors and industry participants. Parliamentary deliberations are expected to shape Turkey’s crypto taxation model and the sector’s longer-term outlook.