THE BILL SUMBIT TO TURKISH PARLIAMENT: DOUBLE TAX MECHANISM COMING FOR CRYPTO ASSETS

THE BILL SUMBIT TO TURKISH PARLIAMENT: DOUBLE TAX MECHANISM COMING FOR CRYPTO ASSETS: TRANSACTION TAX AND 10% WITHHOLDING TAX REGULATION

02.MARCH 2026

The "Bill Proposing Amendments to Certain Laws" submitted to the Grand National Assembly of Turkiye envisages a comprehensive and multi-layered taxation regime for crypto assets. The bill subjects crypto asset transactions to both a transaction-based indirect tax and a profit-based income tax withholding.

Relevant Law Articles:

ARTICLE 1

The title of the Second Section of the Second Part of the Expenditure Taxes Law No. 6802 dated 13/7/1956 has been changed to "Accommodation Tax and Crypto Asset Transaction Tax" and the repealed Article 35 has been reorganized as follows, together with its title.

"Crypto Asset Transaction Tax

ARTICLE 35- Sales and transfer transactions of crypto assets carried out or brokered by crypto asset service providers are subject to the crypto asset transaction tax. The taxable event occurs upon the sale or transfer of crypto assets.

The taxpayer is the crypto asset service providers.

The crypto asset transaction tax is applied at a rate of three per thousand of the crypto asset sale amount or the market value of the crypto asset at the time of transfer.

No deductions or reductions may be made from the tax base under the name of expenses or taxes.

The crypto asset transaction tax for a given month must be declared to the tax office responsible for the taxpayer's income or corporate tax by the 15th day of the following month and paid within the same period.

For the purposes of applying this article, the provisions of Law No. 6362 shall apply with respect to the definitions of crypto assets.

The President is authorized to reduce the tax rate specified in this article to zero or increase it up to five times for each type of transaction separately or together; the Ministry of Treasury and Finance is authorized to determine the procedures and principles for the application of this article.

ARTICLE 3

In the first paragraph of Article 70 of Law No. 193, the phrase "assets" shall be added after the phrase "goods"; in subparagraph (5) of the paragraph, the phrase "crypto assets" shall be added after the phrase "sound and image tapes"; in the second paragraph, the phrase "and assets" shall be added after the phrase "goods". assets," and the phrase "and assets" shall be added after the phrase "rights" in the third paragraph.

ARTICLE 4

In the first sentence of the first paragraph of the repeated Article 80 of Law No. 193, the phrase "goods" has been replaced with "goods, assets"; in paragraph (2), the phrase "rights (excluding patents)" has been replaced with "rights (excluding patents) and assets"; The phrase "property" in the second paragraph has been changed to "property, assets," and the phrase "rights" in the fourth paragraph has been changed to "rights and assets."

ARTICLE 5

The following article has been added after Article 94 of Law No. 193.

"Taxation of Crypto Assets

REPEATED ARTICLE 94- A 10% tax withholding shall be made by the platforms subject to the Capital Markets Law No. 6362 dated 6/12/2012 on the profits and income obtained from transactions related to crypto assets carried out on said platforms, on a quarterly basis for the calendar year. The withholding tax shall not be affected by whether the income recipient is a real or legal person, a full or limited taxpayer, whether they are subject to tax liability, whether they are exempt from tax, or whether the income earned is exempt from tax.

If some of the same crypto assets purchased on different dates are subsequently disposed of, the purchase price to be considered in determining the withholding tax base is determined using the first-in, first-out method. Commissions paid for purchase and sale transactions and transaction taxes paid are taken into account in determining the withholding tax base.

If multiple purchase and sale transactions are made with the same type of crypto assets within the withholding period, these transactions are considered as a single transaction for the purposes of withholding. Losses arising from the purchase and sale of the same type of crypto assets are deducted from the withholding base of the following periods, provided that the calendar year is not exceeded. If the owner of the crypto assets transfers these assets to another platform, the purchase price and purchase date of the assets in question shall be reported to the platform to which the transfer is made. If the crypto asset is transferred to the platform for the first time, the owner's declaration shall be taken as the purchase price, provided that it is substantiated.

No annual or separate tax return shall be filed by real persons for income subject to withholding under this article, nor shall any special tax return be filed by limited liability entities. This income shall not be included in the annual tax return to be filed by real persons for other income. Income earned in the scope of commercial activities is taken into account in determining income within the framework of commercial income provisions, and taxes paid by way of withholding are deducted from the tax calculated in the annual returns filed by individuals and institutions for income subject to withholding.

Income earned from crypto asset transactions conducted outside of platforms subject to Law No. 6362 is declared on the annual income tax return. Losses arising from crypto asset transactions can only be offset against gains earned from these assets.

For the purposes of applying the first paragraph, those who act as intermediaries in the purchase and sale of crypto assets are held liable for taxation within the scope of the information and documents in their possession or delivered to them. If the information is incomplete or incorrect, the necessary taxation is made on behalf of the person making the declaration for the underreported portion.

Platforms shall declare the taxes they withhold to the tax office they are affiliated with by the twenty-sixth day of the month following the withholding period, using a declaration form whose format and content shall be determined by the Ministry of Treasury and Finance, and shall pay them within the same period.

The terms "crypto asset," "wallet," and "platform" used in this article refer to the concepts of crypto asset, wallet, and platform as defined in Law No. 6362.

The President may re-determine the rate specified in the first paragraph by reducing it separately or jointly to zero or increasing it up to one times, based on the type of income and earnings, types of crypto assets, holding period, date of issuance or acquisition, issuers, recipients of income or earnings, and types of wallets. The Ministry of Treasury and Finance is authorized to determine the procedures and principles for the application of this article and to hold parties or intermediaries involved in taxable transactions under the first paragraph liable for the payment of the tax."

ARTICLE 7 (Section on Cryptocurrency)

The phrase "crypto assets subject to crypto asset transaction tax" has been added after the phrase "capital market instruments traded on exchanges established in Turkiye" in paragraph (g) of clause (4) of Article 17 of the Value Added Tax Law No. 3065 dated 25/10/1984.

SUMMARY OF THE PROPOSED LAW:

1. Crypto Asset Transaction Tax (‰0.3)

The proposal adds a new article titled "Crypto Asset Transaction Tax" to the Income Tax Law No. 6802.

Taxable Event

·       Sale of crypto assets

·       Transfer of crypto assets

The inclusion of transfer transactions within the scope of taxation is one of the most notable aspects of the regulation.

Taxpayer

The taxpayers are not the users, but the crypto asset service providers (platforms).

Rate

·       Three per thousand (‰0.3)

·       It may be reduced to zero or increased up to five times by presidential decree.

Tax base

·       Sales amount

·       Fair market value at the time of transfer

This regulation establishes a structure similar to traditional financial transaction taxes; however, due to the technical nature of crypto assets, it will require interpretation in practice, particularly with regard to transfer transactions.

2. 10% Withholding Tax on Crypto Gains (Platforms Subject to the Capital Markets Board)

The repeated article added to the Income Tax Law stipulates that a 10% withholding tax will be levied on gains earned from transactions carried out on platforms subject to the CMB.

Key Features

·       Withholding tax on a quarterly basis

·       Mandatory use of the FIFO (first-in, first-out) method

·       Deductibility of commission and transaction tax from the tax base

·       Final taxation for individuals

·       The President's authority to reduce the rate to zero or increase it up to double

This model transfers a final taxation system similar to that of securities income to crypto assets.

3. Annual Income Declaration on Global Platforms

Withholding tax is not applied to transactions conducted on platforms not subject to the Capital Markets Board (global/overseas).

In this case, the system works as follows:

·       The platform does not withhold tax.

·       The gains obtained are declared via the annual income tax return.

·       A progressive income tax rate is applied (between 15% and 40%).

·       Losses arising from crypto transactions can only be offset against crypto gains.

·       Losses cannot be deducted from salary, rent, or other income sources.

Therefore, global platform users have a reporting obligation and responsibility for record-keeping/evidence.

4. VAT Exemption

The proposal also stipulates that the delivery of crypto assets subject to crypto asset transaction tax shall be exempt from VAT.

This provision aims to prevent double indirect taxation by ensuring that the same transaction is not subject to both transaction tax and VAT.

I. HOW DOES THE SYSTEM DIFFER:

The draft law establishes two separate taxation regimes:

1.     Platforms subject to the Capital Markets Board (licensed)

2.     Platforms not subject to the SPK (global/foreign exchanges)

The taxation technique changes completely according to this distinction.

1.Taxation on Local (SPK (CMB) Licensed) Platforms

2. Taxation on Global Platforms

Assume: 

Purchase = 10,000 USD (Bitcoin value)

Profit sale = 12,000 USD

Loss sale = 8,000 USD

This table clearly shows that: 1. The platform is legally liable for transaction tax, 2. The economic burden of income tax lies with the investor. 3. The local system is withholding-based, while the global system is declaration-based.

KEY POINTS:

1. Taxation of Transfer Transactions

Including transfer transactions within the scope of taxable events will create a serious need for interpretation in practice with regard to on-chain wallet movements, inter-platform transfers, and custody transactions.

Especially due to the technical nature of crypto assets:

• Cold wallet – hot wallet transfers,

• Transfers between different platforms belonging to the same person,

• Transfers for storage purposes

must be clarified through secondary regulations. Otherwise, uncertainty and the risk of disputes may arise in practice.

2. Withholding Tax as Final Tax (Local Platforms)

The acceptance of the 10% withholding tax on platforms subject to the Capital Markets Board as a final tax for real persons establishes a structure similar to the classic securities regime.

This situation:

• Eliminates the reporting burden,

• Provides tax predictability.

However, double taxation avoidance agreements require additional technical assessment for narrowly liable investors and those conducting transactions within the scope of commercial income.

3. Reporting Procedure on Global Platforms: Will cause considerable complexity for investors:

Withholding tax is not applied on (global) platforms not subject to the Capital Markets Board (SPK); profits are declared via the annual income tax return.

This model creates a highly complex structure for investors:

(i) The Issue of Constant Volatility

Due to the high volatility of crypto assets:

• Daily, even hourly price changes,

• Numerous short-term buy-sell transactions,

• Transitions between stablecoins and different token types,

technically complicate profit calculations.

(ii) Multiple Cryptocurrency Types

For each type of crypto asset (BTC, ETH, altcoins, stablecoins, etc.):

• Separate cost tracking,

• Separate profit/loss calculation,

• FIFO application,

will be required. This situation will create a significant accounting burden, especially for investors with high trading volumes.

(iii) High Annual Declaration Rates

The income tax rate applicable to global platform transactions is progressive (15%–40%).

These rates:

• are considerably higher than the fixed 10% under the withholding tax regime.

• They can significantly increase the tax burden for investors in the high income bracket.

• May result in unexpected tax burdens if no tax planning is undertaken.

(iv) Burden of Proof and Recordkeeping

Under the declaration method:

• Purchase price,

• The sale price,

• Commissions,

• Transfer records,

• Currency conversions,

must be documented completely and accurately by the investor.

The fact that crypto transactions are often carried out through different wallets and different platforms makes this process even more difficult.

Therefore, for global platform users:

·       Technical accounting tracking

·       Need for tax advisory services

·       Audit risk

have increased significantly.

4. Broad Authority Granted to the President

The ability to reduce or increase tax rates to zero means that the tax burden can be changed through administrative discretion.

This situation:

• The principle of legal predictability,

• Investment security,

• Tax planning

is an element that must be carefully monitored.

5. The Increasing Compliance Burden on Platforms

The proposal subjects not only investors but also platforms to a serious compliance process:

• FIFO cost tracking

• Cost reporting on transfers

• Quarterly withholding tax declaration

• Monthly transaction tax declaration

Platforms may be required to develop specialized software and establish substantial operational infrastructure. This process may lead to technical difficulties during the transition period.

Overall Assessment

This regulation is not merely a change in the legal framework; it is also a tax policy choice with significant financial implications.

Specifically:

• Calculation of the withholding tax base,

• The complexity of disclosure obligations on global platforms,

• Loss offset practices,

• The scope of transfer transactions,

• The economic impact of the combined application of transaction tax and income tax,

• Potential consequences on investor behavior

require the assessment of tax law and fiscal policy experts.

OUR LEGAL ASSESSMENT:

A comparison table shows that the system proposed by Turkiye establishes a more layered and differentiated structure compared to international examples.

In most countries, the taxation of crypto assets is handled within the classic capital gains regime; no transaction-based tax is envisaged. In the US, UK, France, and Germany, investors file annual returns based on their residency, regardless of whether the platform is global or local. Turkiye's proposal, however, makes a clear distinction between local and global platforms.

The repeated article added to the Income Tax Law provides for a 10% withholding tax on platforms subject to the CMB. This withholding tax is final for real persons. This model establishes a structure similar to the withholding tax system applied to securities income and eliminates the reporting burden. From a legal perspective, this system provides administrative convenience and predictability.

In contrast, withholding tax is not applied on global platforms not subject to the CMB; gains are declared through the annual income tax return under the general provisions of the Income Tax Law. In this case, a progressive tax rate (15%–40%) will apply. This rate can result in a significantly higher tax burden, especially in higher income brackets, compared to the fixed 10% withholding tax rate on local platforms.

Compared to international examples, Turkiye's progressive system for global platforms includes a higher upper bracket than the 30% flat tax model in France or the 0–20% long-term capital gains rates in the US. While countries such as Germany and Portugal offer tax advantages for long-term holdings, Turkiye's proposal does not provide for any exemption based on holding period.

The transaction tax regulation added to the Income Tax Law No. 6802 is also an important element that distinguishes the Turkish model. The introduction of a ‰0.3 transaction tax on sales and transfers creates a hybrid structure that taxes the moment of the transaction, unlike classic capital gains regimes. This practice is not common in international examples.

The declaration system on global platforms may also create significant complexity for investors in practice. Considering the high volatility of crypto assets, the large number of different token types, and frequent trading, accurately calculating gains at the end of the year can become technically quite difficult. The FIFO method, cost tracking, currency conversions, and proof of transfer records will be the responsibility of the investor. This increases both the accounting burden and the audit risk.

Furthermore, the authority granted to the President to determine rates is noteworthy in terms of legal predictability. The fact that withholding tax and transaction tax rates can be changed by administrative decision is an element that could create uncertainty in terms of tax planning and investment security.

In conclusion, the proposal subjects crypto assets in Turkiye to a systematic and multi-layered tax regime for the first time. While the withholding-based model appears more predictable for local platforms, the progressive declaration system for global platforms creates a higher and more complex tax burden. The comparative table also shows that the Turkish model differs from classic single-tier capital gains systems and presents a hybrid tax architecture.

In this context, we believe that the proposal should be re-evaluated, particularly with regard to the declaration regime for global platforms. While an effective collection mechanism has already been established through withholding tax on local platforms, introducing a progressive and complex declaration obligation for global stock exchange transactions could cause serious problems in practice and effectively push investors out of the system. Opting for a simpler, more predictable, and uniform taxation model would be healthier in terms of both legal certainty and market stability.

CRITICAL PROCESS: Legislative Process and Next Steps

The regulation in question is currently a bill submitted to the Turkish Grand National Assembly; it is not yet a law that has entered into force.

As the proposal is a financial regulation, it will be discussed by the Planning and Budget Commission. At the commission stage, members of parliament may propose amendments to the articles, raise objections, and revise the text. At this stage, public opinion and the assessments of industry representatives may also have an indirect impact.

The text passed by the committee will then be discussed article by article and voted on by the Grand National Assembly of Turkiye. If it is accepted by the General Assembly and approved by the President and published in the Official Gazette, the regulation will become law.

Therefore, the current text is not final; it may undergo changes during the committee and General Assembly processes. For this reason, it is important to closely monitor the process in terms of both its legal and financial dimensions.

Kind Regards

GlobalB Law

Sima Baktas - Attorney At Law

sima@globalblaw.com

globalblaw.com