Bitcoin in Turkey is in the lens of the Ministry of Finance, the Central Bank and the CMB

Bitcoin in Turkey, managed to attract the attention of official authorities and entered the lens. Finance, CMB and Central Bank are trying to name Bitcoin and cryptocurrencies. There are three possibilities. If crypto money is called ‘commodity’, those who earn from it will be subject to income tax

Bitcoin and similar crypto money in Turkey, with the action of the official authorities, has also been examined by the state. First of all, action was taken to tax those who earn from cryptocurrencies. However, according to tax laws, the name of that income must be given in order to tax a profit. According to the information given by Adnan Ertürk, the Head of Revenue Administration, the Ministry of Finance should also name crypto money. On the one hand, the Capital Markets Board and on the other hand, consulted the Central Bank and asked for help on the name.. The end of this study will be announced soon.. However, Ertürk also gave clues about the evaluations of institutions.

CMB AGAINST BITCOIN BEING SECURITIES

Indicating that naming cryptocurrencies is the main condition for taxation Ertürk noted that they focused on three names. The first of these is the acceptance of Bitcoin as a ‘commodity’. The second is ‘securities’ and the third is ‘money’. states that it does not fit the definition. First of all, they stated that there should be a real product on which the security is based.”

Central Bank experts, on the other hand, based on the fact that money should be printed by a state, or rather a central bank of a state, and still for a value, albeit fictitious. He says that they express that it cannot be called ‘money’.

CLOSE TO COMMODITIES

Attitude of the Central Bank and CMB In Turkey, Bitcoin and crypto money are accepted as commodities. strengthens the signs that he will. Ertürk gives the example of Canada, reminding that this country sees Bitcoin as a commodity.. Although it is not clear yet, we can deduce that the Revenue Administration’s tendency is in this direction.

IF CRYPTO COINS ARE COMMODITIES, THERE ARE INCOME TAX AND VAT

The name of Bitcoin Why is it so important to put in? Because in order for the Ministry of Finance to tax something, it is necessary to put its name on it.. After this name is given, of course, those who profit from this situation will be taxed.. Ertürk, as the prevailing opinion at the moment, states that if Bitcoin is considered as a commodity, in this case, it can be taxed in two ways.. If the person has bought and sold Bitcoin once and has earned an income from it, this gain will be taxed as either capital gains or incidental gains.. If you earn more than 24 thousand liras in 2017, you have to declare it and pay the tax.. If you are constantly buying and selling Bitcoin and you have earned income from it, then you have to file an income tax return and pay Income Tax from your earnings.. The rate of this tax starts from 15 percent and goes up to 35 percent.. Let us remind you right away, 18 percent VAT has to be paid as well.

ONEY BUYING AND SELLING MUST EXCEED 24 THOUSAND LIRA

When it is accepted as a commodity, you can buy and sell Bitcoin once and sell it once. For those who earn income, this income can be considered as an accidental income.. In order for the incidental income to be declared and taxed, the income in 2017 must exceed 24 thousand liras.. The portion exceeding 24 thousand liras is declared and taxed with an annual declaration like other incomes.. If this amount is not exceeded, it is not subject to tax and tax.

WHO WILL BE TAXED?

Miners

Capital and labor mix carries on an activity. Being a labor-intensive activity and generating income as a result requires it to be described as “commercial gain”.

Clearing Platforms

3 Bitcoin exchanges in Turkey are active but not organized. They mediate the buying and selling transaction by. The commission fees they receive per transaction constitute the corporate income.

Users

In order to tax these people who earn trading income, cryptocurrencies are issued by regulatory and supervisory institutions (mostly Its definition must be made by the CBRT and CMB).

To be evaluated together as a security or other capital market instrument requires taxation as an increase in value.

Money

In case of definition as money, GVK’s It is thought that it will not fall into any of the income elements it perceives.

Commodity

In case it is defined as a commodity, the profits from trading will be considered as commercial activity and will be taxed according to the provisions of commercial income.

IF IT IS MONEY, THE WINNER WILL NOT PAY TAX

<

INCOME TAX IS AVAILABLE IF ITS SECURITIES, NO VAT

If Bitcoin is considered a security, then income tax has to be paid. However, this time, the gain will be evaluated as an increase in value and another important point is that VAT will not be paid, unlike commodities.. Expressing that the counting of securities will bring along many problems, Ertürk draws attention to the countries in which the platforms are established and the status of the agreements between these countries and Turkey.. Of course, it is also necessary to meet the other conditions provided by the law in order to collect tax from the securities gains.. On the other hand, there is no consensus yet on whether the Bitcoin income comes from Turkey or from a country in the first place.. Finally, if Bitcoin, which the Central Bank is against for now, is evaluated as a currency, it will be valued just like you buy and sell Euros or dollars, and no tax will be charged.

11 THOUSAND TL LIMIT IN SECURITIES

In Turkey, if Bitcoin is accepted as a security, the income must exceed 11 thousand liras in 2016 in order to file an income tax return and pay taxes.. There is no need for declaration or tax for less than 11 thousand liras.

Source: haberturk

Current Travala (AVA) guide: What is an AVA token?