Taxes on cryptocurrencies

[Nahasco 7]

What taxes apply to buying, selling, and profiting from cryptocurrencies such as bitcoin. I am using a Turkish website for trading (btcturk.com). What do you think? Any experience? 

Thanks in advance.

[Ken Grubb 1,417]

Whether you have to pay taxes in Turkey or not depends on where your "tax home" is. Turkey has tax treaties with many countries which say how much time you have to be in Turkey for it to become your tax home. The treaty will also say what is taxable in your home country and what is taxable in Turkey.

Do a Google search for the tax treaty between Turkey and your home country. That will tell you the period of time you need to be in Turkey before it becomes your tax home, and what you'll owe taxes for in either or both countries.

Consult with a tax professional. Yesterday I read the tax treaty between Turkey and the USA, and it looked to me like I was liable for capital gains from a U.S. mutual fund in Turkey. But today I talked to my tax advisor, who has also read the treaty, and she's saying I don't owe taxes in Turkey, that I have to pay them in the U.S.A. I've asked her to check to treaty again to make sure. It's always better to get advice from a professional tax accountant than to try to figure out such treaties by yourself.

 

[Nahasco 7]

My home country is an Arabian country and Arabian countries dont have such tax systems. I only have to pay VAT in my country (and its inclusive). Whats the situation in my case? What about Turkish citizens? Do they pay taxes for trading in cryptocurrencies?

[Ken Grubb 1,417]

It seems to me you should contact a tax professional in your home country about this. I'd like to help, but I'm not a qualified tax accountant, and I don't know the tax laws in your country or what agreements they might have with Turkey.