Turkey rejected plans to tax dividends and cryptocurrencies, but proposed…

Turkey has rejected plans to tax dividends and cryptocurrencies, but has proposed a “very limited” tax on transactions.

According to Bloomberg, Treasury and Finance Minister Mehmet Simsek said in an interview in Ankara that the government was considering imposing a “very limited” transaction tax on assets.

“Our goal is not to leave any region without taxes in order to ensure fairness and efficiency of taxation,” Şimşek said, without specifying its potential size. In 2008, Turkey reduced the tax rate on stock market profits from 10% to 0%.

Bloomberg reported on June 4 that the country’s authorities were considering imposing a tax on gains from trading stocks and cryptocurrencies. During a meeting this weekend, Minister Şimşek highlighted the importance of properly taxing all financial income.

So far, Turkey does not have specific regulations to tax cryptocurrencies. However, the country is actively working on creating a legal framework for digital assets.

On May 16, Turkey’s ruling party introduced a new bill to regulate the cryptocurrency market. The bill requires cryptocurrency companies to obtain licenses and comply with international standards, such as capital markets board regulations.

The legislation also provides for mandatory revenue collection from crypto service providers and a ban on foreign cryptocurrency brokers to strengthen the domestically regulated ecosystem. According to local media, the move aims to address the concerns of the Financial Action Task Force (FATF) and remove the country from the regulator’s “grey list”.

Turkey has a significant presence in the global cryptocurrency market, ranking fourth globally in terms of estimated trading volume according to data from Chainana Analysis. The country’s trade volume is estimated to reach $170 billion in 2023, surpassing economies such as Russia, Canada, Vietnam, Thailand and Germany.

Turkish cryptocurrency holders have been banned from making payments using cryptocurrencies such as Bitcoin (BTC) since 2021.

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