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Türkiye Abandons Plans to Tax Crypto and Stock Market Earnings

Türkiye’s government has decided against taxing profits from cryptocurrency and stock market trading. Vice President Cevdet Yılmaz announced that the proposal for a levy on these trading profits has been shelved, stating, “The stock market tax is not on our agenda.” He confirmed that this also applies to any taxation of cryptocurrency earnings.

Following this announcement, the Istanbul stock exchange reacted positively, with the blue-chip BIST 100 index increasing by 1.44% on the news, and further gains were observed on September 25.

Earlier in June, Treasury and Finance Minister Mehmet Şimşek had indicated that the government was considering taxing crypto and stock earnings, although he noted that any proposals would be subject to extensive consultations. Previously, Türkiye had taxed stock trade earnings at a rate of 10% until it was abolished in 2008 to attract foreign investors.

Economist Mustafa Sönmez explained that the government is seeking to boost revenue through alternative measures due to struggles with traditional taxation. The initial plans to tax areas like the stock exchange and crypto were reconsidered to avoid deterring foreign investment.

Yılmaz also hinted at upcoming changes in tax policy, mentioning a potential narrowing of tax exemptions without specifying which areas would be affected. The government is exploring various strategies to close the budget deficit, including potential cuts in state spending and the introduction of other tax measures.

  • Author: Gunel Musa

Public Relations Manager

09.10.2024
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