Page 14 - VGOcak_2018

Taxation on income derived If considered as a commodity:
from crypto currencies

Crypto currency has recently become an intensely discussed
topic by different segments of society in many countries. As
well as describing it “an investment tool with high yields”,
many people qualifying it as Ponzi Scheme or tulip mania
also exist. However, it’s a fact that the crypto currencies led
by Bitcoin seem to be occupying our agenda for a long time
indeed. If any income is Comissions received Miners will be
acquired from by stock exchanges receiving securities
the purchase and in return for instead of money
Through a news report emerging out the news agencies in sale transaction, purchase and sale in return for the
December, we have learned that the Capital Markets Board, it's observed transactions they service supplied.
Central Bank of Turkey and Ministry of Finance have put the that whether it mediated create Value of the
commodity form
their commercial
is continuous or
crypto currency on their agenda and initiated study so as to not. Continuous income. their commercial
identify the type. There is no doubt that the task of “naming transactions income. In the
it” will be accompanied by a certain taxational outcome, of create circumstance that
course. It’s indicated that the authorities are concentrating commercial the commodities are
income while one
sold, income derived
on three options (currency, security and commodity) but off transactions will be considered as
leaning closer to the commodity option. create accidental commercial income.
commercial
Bitcoin in fact is a product of the Blockchain technology income. For
2017, TL 24.000
with its foundation based on resolving a complicated maths of accidental
problem within consensus. Every solution provides the income is
formation of a data block while bringing together an award exemptfrom
paid as Bitcoin-denominated. People called as “Miners” are income tax.
performing this task of solving with high processing powered
computers, both by winning the award and handling the In the circumstance that they are considered as a security:
crypto currency transfer to the “other wallets” from the
“wallet” through this data block.

Existing users are accepting the crypto currency as “money”
already and they see the income derived during the purchase
and sale process as exchange difference. Therefore, they
think that they should not be subject to any taxational
liabilities. Crypto currency stock exchanges in which crypto
currencies are traded are already structured as a company
and calculate VAT over the commission they receive while If any income is Comissions received Miners will be
their commissioning revenue stands for the corporate derived following by crypto currency receiving securities
income. Miners are already liable for commercial activity a purchase and stock exchanges instead of money
sale transaction,
in return for the
in return for
resulting from the service fee they receive in return for it would be purchase and sale service supplied.
awards they obtained and crypto currency transfers. considered transactions they Value of the
as value mediated create securities form their
However, according to the decision to be made by the appreciation their commercial commercial income.
In the circumstance
income.
income. Pursuant
authorities, taxational positions of parties engaged in crypto to the regulation that the secruties
currency transactions may be shifting as well. from the are sold, income
Administration, derived will be
they will be considered as
taxed through commercial income.
witholding or tax
return. Exemption
of value
appreciation
income is not
applied over
securities.

14 Ocak 2018