Türkiye moves to tax crypto trades, diamonds in broad fiscal overhaul

ANKARA

Cryptocurrencies and diamonds are set to face new taxation under a sweeping legislative proposal submitted to parliament, marking a shift in Türkiye’s fiscal framework.

The 19-article bill aims to “strengthen tax justice” by broadening the tax base across digital assets and luxury consumption, according to Abdullah Güler, head of the ruling Justice and Development Party’s parliamentary group. The proposal has been formally presented to the Grand National Assembly.

At the forefront is the fast-growing crypto sector, which has drawn significant retail interest in Türkiye in recent years. Under the proposal, sales and transfers of digital assets carried out via crypto service providers would be subject to a 0.3 percent transaction tax.

Crypto earnings would also be taxed, primarily through withholding at the source. However, the bill makes clear that value added tax (VAT) will not apply to crypto transactions, a distinction aimed at avoiding double taxation while still bringing the sector into the formal tax net.

Luxury goods are also in the spotlight. Diamonds, pearls and other precious stones — along with products manufactured from them — would face a special 20 percent special consumption tax at the point of sale.

The proposal also includes a new regulation regarding the legal status of treasurers following the Constitutional Court's annulment decision.

The bill also removes the ability of companies to deduct advertising and promotional expenses related to gambling and betting from their taxable income, effectively ending a tax advantage tied to betting advertisements.

The full VAT exemption applied to housing sales and health services provided to foreigners would be converted into a partial exemption, while residential leasing by businesses would be brought under VAT exemption.

Foundation university hospitals operating as commercial enterprises would lose their corporate tax exemption and be taxed under the same principles as private hospitals.

The indicator used in calculating paid military service would rise from 240,000 to 300,000, a change expected to increase the fee to around 420,000 Turkish Liras ($9,600), with additional revenues directed to the Defense Ministry Support Fund.

In the energy sphere, state energy company Botaş would be allowed to offset tax and fund debts against receivables from the Treasury stemming from assigned duties.