Turkey

In Turkey, cryptocurrencies are legally defined as virtual digital assets or intangible assets, distinct from legal tender. The country has a regulated crypto environment, meaning cryptocurrencies are not banned. Virtual Asset Service Providers (VASPs) are required to be licensed by the Capital Markets Board (CMB) as of 2024. While general tax laws currently apply, specific crypto tax rules are under consideration. The Revenue Administration Presidency of the Ministry of Treasury and Finance (GİB) is the primary body responsible for tax administration in Turkey. Crypto taxation currently falls under the general income tax framework, but this is subject to ongoing legislative developments. For individuals, there is currently no specific crypto tax rate. Gains from crypto are generally not subject to a dedicated capital gains tax, but if deemed income, they fall under the progressive individual income tax rates ranging from 15% to 40%. Trading crypto for fiat currency or other cryptocurrencies is not explicitly taxable currently, though gains may be considered irregular income. There are no reduced rates or exemptions for long-term crypto holdings. Corporate entities dealing with crypto are subject to the standard corporate tax rate of 25%. Value Added Tax (VAT) is not applied to crypto transactions, as they are classified as financial services. Specific crypto activities are generally taxed under the existing progressive income tax rules. Rewards from staking are treated as ordinary income upon receipt and taxed at 15-40%. Mining income is considered business income, also subject to the 15-40% progressive rates, with deductible expenses. Yields and interactions within Decentralized Finance (DeFi) are generally taxed as income or gains at the 15-40% progressive rates. Sales of Non-Fungible Tokens (NFTs) are also subject to these progressive rates, treated as capital gains or income. Recent developments indicate potential changes to the Turkish crypto tax landscape. Proposed crypto tax provisions, including a 10% withholding tax on domestic platforms and a 0.03% transaction tax, were removed from an omnibus bill in March 2026. However, these specific tax measures may be reintroduced separately and could apply to incomes from 2026 onwards, with the Treasury overseeing their implementation if enacted.