How to Report Crypto Income in Turkey: Complete 2024 Tax Guide

Understanding Crypto Tax Obligations in Turkey

As cryptocurrency adoption surges in Turkey, understanding how to report crypto income has become essential. The Turkish Revenue Administration (Gelir İdaresi Başkanlığı) treats cryptocurrencies as intangible assets subject to income tax under the Turkish Tax Code (No. 193). Whether you’re trading, mining, or earning staking rewards, all crypto profits must be declared in your annual tax return. Failure to report can result in penalties up to 150% of evaded taxes plus interest charges. This guide explains Turkey’s crypto tax framework in simple terms.

What Qualifies as Taxable Crypto Income?

Turkish tax law requires declaration of all crypto-related profits. Taxable events include:

• Crypto-to-fiat conversions: Selling Bitcoin, Ethereum, or altcoins for Turkish Lira (TRY)
• Crypto-to-crypto trades: Exchanging one digital asset for another (e.g., BTC to ETH)
• Mining rewards: Income from validating blockchain transactions
• Staking/yield farming: Earnings from locking crypto in DeFi protocols
• Airdrops & forks: Free token distributions valued above 2,300 TRY
• NFT sales: Profits from selling non-fungible tokens

Note: Personal transfers between your own wallets aren’t taxable events.

Step-by-Step Reporting Process

1. Calculate Your Annual Crypto Gains

Determine taxable profit using this formula:
Sale Price – Purchase Cost – Transaction Fees = Taxable Gain
Track all transactions using crypto tax software or exchange reports. Maintain records for 5 years.

2. Complete Your Tax Return (Beyanname)

Report gains under “Other Income” (Diğer Kazanç ve İratlar) on Form BİR. Key details to include:

• Total annual crypto profits in TRY
• Breakdown by transaction type (trading, mining, etc.)
• Supporting documentation (trade histories, wallet statements)

3. Submit Before Deadline

File electronically via the Revenue Administration portal by March 31st following the tax year. Example: 2024 earnings must be reported by March 31, 2025.

Current Crypto Tax Rates in Turkey

Turkey applies progressive income tax brackets to crypto profits:

• Up to 70,000 TRY: 15%
• 70,001 – 150,000 TRY: 20%
• 150,001 – 550,000 TRY: 27%
• Over 550,000 TRY: 35%

No VAT applies to crypto transactions. Losses can be carried forward 5 years to offset future gains.

Essential Record-Keeping Requirements

Maintain these documents to support your declaration:

1. Dated records of all buy/sell transactions
2. Exchange withdrawal/deposit histories
3. Mining pool payment statements
4. DeFi platform earning reports
5. Bank statements showing fiat conversions

Recommended tools: Koinly, CoinTracker, or custom spreadsheets with TRY conversions.

FAQs: Crypto Taxes in Turkey

Q: Do I pay tax if I hold crypto without selling?
A: No. Taxation only occurs when you dispose of crypto through selling, trading, or spending.

Q: How are foreign exchange earnings taxed?
A: Profits from crypto traded on international exchanges follow the same rules. Convert gains to TRY using the Central Bank’s year-end exchange rate.

Q: Are there tax exemptions for small earnings?
A: Yes. Annual crypto profits under 2,300 TRY (2024 threshold) are tax-exempt.

Q: What happens if I forget to declare crypto income?
A: Undeclared income may trigger audits, penalties up to 150% of owed tax, and criminal charges for severe cases.

Q: Can I deduct crypto losses?
A: Yes. Net losses reduce your overall taxable income and can be carried forward for 5 years.

Q: Is peer-to-peer (P2P) trading taxable?
A: Yes. All crypto disposals are taxable regardless of platform, including P2P transactions.

Professional Guidance Recommended

Given the complexity of crypto taxation, consult a Turkish-certified tax advisor (Yeminli Mali Müşavir) for personalized advice. The Revenue Administration periodically updates guidelines, so verify current rules before filing. Proper reporting ensures compliance while maximizing legal deductions in Turkey’s evolving crypto landscape.