Digital Economy and Taxation of Crypto Assets: A Model Proposal for Turkey

Abstract

This study examines the taxation problems of crypto assets in Turkey, which have increased in importance with the development of the digital economy and aims to reveal the gaps in the legal definition and integration of these assets into the tax system. The main objective of the study is to identify the shortcomings and implementation problems in the current legislation and to propose an effective and applicable crypto asset taxation model specific to Turkey in the light of international examples. The qualitative method was adopted in the study; national legislation, regulatory body reports, academic studies and policies of international organizations (OECD, IMF, etc.) were examined using document review and content analysis techniques. The findings show that although Turkey ranks high in the world rankings in the use of crypto assets, legal and tax regulations in this area are inadequate. As a result, the study recommends the legal definition of crypto assets as “digital assets”, the creation of a new income category under the title of “digital asset income”, exemptions for individual investors and the development of platform-based audit mechanisms.