Turkey Applies Regulatory Measures to Cryptocurrency Companies

In Turkey, regulatory guidelines regarding taxpayer notices are beginning to take effect as part of the fight against tax evasion. This is reported by CNN Turk.

The communiqué by Turkey's Ministry of Treasury and Finance applies to many different organizations, including banks, sports teams and cryptocurrency service providers.

These organizations will be subject to important regulatory measures. In particular, the range of taxpayers obliged to report against tax evasion will be defined. This will also include procedures for notifying taxpayers.

Hazine ve Maliye Bakanlığı'ndan vergi ve kripto para düzenlemesi: Yürürlüğe girdi https://t.co/KlSL4sEZzz pic.twitter.com/otkJQQrobj

— CNN TÜRK #MaskeniTak ? (@cnnturk) July 13, 2021

The ministry also introduced mandatory notification of the real person or persons who ultimately control a legal entity or unincorporated entities—defined as the "real beneficiary."

Cryptocurrency companies were also included in the notification obligations. Thus, corporate taxpayers will be required to provide information about the real beneficiary as an attachment to the temporary tax return and the annual corporate tax return of Turkey.

Provisional tax returns and real beneficiary information will be declared in the annex of the annual corporate tax return, including the name, surname, citizenship, identity numbers and addresses of beneficiaries, telephone numbers, fax numbers and e-mail address, if any, and the reason for the beneficiary.

The taxpayer will have to hang on to the information sent electronically for five years.

In line with the obligation to start on Aug. 1, the first notification to the Revenue Administration must be made by Aug. 31. For taxpayers who do not report the required information, or who give incomplete or misleading notifications, the relevant penalty is included in the law.

Thus, Turkey joins the list of countries applying regulatory measures against cryptocurrencies.