{

“title”: “How to Report Crypto Income in Turkey: 2024 Tax Guide & Compliance Steps”,
“content”: “

Understanding Crypto Tax Obligations in Turkey

Cryptocurrency income is fully taxable in Turkey under the Income Tax Law (No. 193). The Turkish Revenue Administration (Gelir İdaresi Başkanlığı) treats profits from crypto trading, mining, staking, and airdrops as capital gains or commercial income, depending on activity frequency. All Turkish tax residents must declare crypto earnings annually. Non-compliance risks penalties up to 150% of owed tax plus interest.

Who Must Report Crypto Income?

You need to report crypto income if:

• You’re a Turkish tax resident (spends >6 months/year in Turkey)
• You earned profits from selling crypto assets
• You received crypto through mining, staking, or airdrops
• Your business accepts crypto payments
• Annual gains exceed the tax-free threshold (₺60,000 for 2024)

Step-by-Step Guide to Reporting Crypto Income

1. Calculate Your Taxable Income

Deduct acquisition costs from disposal value. For example:

• Purchase price + transaction fees
• Mining/staking operational costs (electricity, hardware)

Formula: Taxable Gain = Selling Price – (Purchase Cost + Allowable Expenses)

2. Gather Required Documents

• Transaction histories from exchanges (Binance, Paribu, etc.)
• Wallet addresses and transfer logs
• Receipts for hardware/operational costs (for miners)
• Bank statements showing fiat conversions

3. File Your Tax Return

Submit via Turkey’s e-Declaration system (e-Beyanname):

1. Log in at GIB portal with e-signature
2. Complete the Annual Income Tax Return (Form BİM)
3. Enter crypto gains under \”Capital Gains\” (Sermaye Kazançları)
4. Pay owed taxes by March 31, 2025 (for 2024 income)

Crypto Tax Rates in Turkey (2024)

• Individuals: Progressive rates from 15% to 40% based on income brackets
• Businesses: Flat 25% corporate tax on commercial crypto activities
• Tax-Free Allowance: First ₺60,000 annual gain exempt

Deadlines & Penalties

• Reporting Deadline: March 31 following the tax year
• Late Filing: 5% monthly penalty (capped at 150%)
• Underpayment: 20% penalty + 2.5% monthly interest

FAQs: Reporting Crypto Income in Turkey

Is cryptocurrency legal in Turkey?

Yes, crypto is legal but regulated. Exchanges must comply with AML laws under Law No. 5549. The Central Bank bans crypto for payments since 2021.

Do I pay tax if I hold crypto without selling?

No. Tax applies only upon disposal (selling, trading, or spending crypto). Unrealized gains aren’t taxed.

How are crypto mining earnings taxed?

Mining rewards are taxed as commercial income at corporate rates (25%) if done professionally. Occasional miners pay individual income tax.

What records must I keep?

Maintain 5 years of: transaction timestamps, wallet IDs, exchange records, cost proofs, and fiat conversion details.

Can I offset crypto losses?

Yes. Capital losses reduce taxable gains in the same year. Unused losses carry forward 5 years.

Pro Tips for Compliance

• Use tax software like Koinly or CoinTracker for automated gain calculations
• Convert crypto values to TRY using Central Bank rates on transaction dates
• Consult a certified Turkish tax advisor for complex cases

Always verify updates via the official GIB website, as regulations evolve rapidly. Timely reporting avoids severe penalties and ensures legal crypto participation in Turkey.

”
}