Research Article
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Taxation of Virtual/Crypto Assets/Currencies

Year 2022, Volume: 30 Issue: 52, 37 - 54, 28.04.2022
https://doi.org/10.17233/sosyoekonomi.2022.02.03

Abstract

The digital economy produces its elements. The most important elements are the coins/assets produced in digital or virtual environments, which cannot be fully conceptualised. In terms of taxation, the most important issues are the definition of these assets, the determination of a term that everyone generally agrees on, and the classification of these assets. This study aims to find the current crypto asset definition, classification, and taxation situation. For this purpose, Turkey and various country implementations and OECD recommendations were examined. A unity of terminology has yet to be reached on this issue, and the term virtual currency was used for these assets in the report published by the OECD in October 2020. As a result of this study, it is found that there is no still unity of implementation in terms of the taxation of these virtual assets, which are still considered illegal in some countries.

References

  • Alpago, H. (2018), “Bitcoin’den Selfcoin’e Kripto Para”, Journal of International Scientific Researches, 3(2), 411-428.
  • Bank of England (2021), What Are Cryptoassets (Cryptocurrencies)?, <https://www.bankofengland.co.uk/knowledgebank/what-are-cryptocurrencies>, 15.02.2021.
  • Bankrate (2021), What is a cryptocurrency wallet?, <https://www.bankrate.com/glossary/c/cryptocurrency-wallet/>, 03.01.2022.
  • BCS (2016), The Digital Economy, <https://policy.bcs.org/sites/policy.bcs.org/files/digital%20economy%20Final%20version_0.pdf>, 16.01.2021.
  • BTV (2019), Blockhain İçin Kavramsal Mimari, <https://bctr.org/wp-content/uploads/2019/04/04-Blockchain-icin-kavramsal-mimari.pdf>, 16.02.2021.
  • Çarkacıoğlu, A. (2016), Kripto-Para Bitcoin, <https://www.ekovizyon.com.tr/wp-content/uploads/2017/01/SPK-Bitcoin-Raporu.pdf>, 22.01.2021.
  • Casey, A. et al. (2020), Reviewing the Boundary Between Valuables and Financial Assets in SNA 2008 In the Light of Bitcoin and Similar Crypto-Assets and The UK Experience of Non-Monetary Gold, <https://unstats.un.org/unsd/nationalaccount/aeg/2020/M14_BD2_Boundary_Valuables_Financial_Crypto_Assets.PDF>, 13.01.2021.
  • Castrén, O. et al. (2020), Digital Currencies in Financial Networks, <https://www.eba.europa.eu/sites/default/documents/files/document_library/887439/Digital%20currencies%20in%20financial%20networks.pdf>, 16.01.2021.
  • CFI (2021), What Is Virtual Currency?, <https://corporatefinanceinstitute.com/resources/knowledge/other/virtual-currency/>, 16.02.2021.
  • Chaum D.L. (1982), “Computer Systems Established, Maintained, And Trusted by Mutually Suspicious Groups”, Thesis, Berkeley: University of California.
  • Chaum, D. (1983), “Blind Signatures for Untraceable Payments”, in: D. Chaum et al. (eds.), Advances in Cryptology (199-203), Boston: Springer.
  • Chaum, D. et al. (1990), “Untraceable Electronic Cash”, in: S. Goldwasser (ed.), Advances in Cryptology - CRYPTO '88 (319-327), New York: Springer-Verlag.
  • CIAT (2020), Cryptocurrency Taxation: How to Take a Step Forward, <https://www.ciat.org/tributacion-de-las-criptomonedas-como-dar-un-paso-adelante/?lang=en,%20https://koinly.io/guides/crypto-tax-australia/>, 12.01.2021.
  • Coindesk (2021), Bitcoin (USD) Price, <http://www.coindesk.com/price/>, 24.02.2021.
  • Crypyopara (2021), Dijital Para Nedir, Coin Yatırım & Kazanç Etme Yolları, <http://cryptopara.net/kripto-para-madenciligi-hakkinda-haberler-bilgiler/8-blog/24-dijital-para-coin-nedir-nasil-kazanc-elde-ettirir.html>, 11.02.2021.
  • Dursun, T. (2021), Blokzincir Teknolojisi, <https://bag.org.tr/?p=734>, 12.02.2021.
  • EFRAG (2020), Accounting for Crypto-Assets (Liabilities): Holder and Issuer Perspective, <http://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/EFRAG%2520Discussion%2520Paper-Accounting%2520for%2520Crypto-Assets%2520%28Liabilities%29-%2520July%25202020.pdf>; 14.01.2021.
  • Ersoy, E.C. & E. Kartın (2021), Turkey: Taxation of Cryptocurrency, <https://www.mondaq.com/turkey/fin-tech/1111456/taxation-of-cryptocurrency>, 05.01.2022.
  • Esener, E. (2017), Bitcoin (Dijital) Para Nedir?, <http://startuphukuku.com/bitcoin-nedir/>, 07.01.2021.
  • ESMA (2020), Initial Coin Offerings and Crypto-Assets, <https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf>, 14.01.2021.
  • Haber, S. & W. Stornetta (1991), “How to Time-Stamp A Digital Document”, J. Cryptology, 3, 99-111.
  • Hg.org (2021), Bitcoin - Facts, Mining, and Investment Safety in Turkey, <https://www.hg.org/legal-articles/bitcoin-facts-mining-and-investment-safety-in-turkey-45836>, 05.01.2022.
  • Houben, R. & A. Snyers (2020), Crypto-Assets Key Developments, Regulatory Concerns and Responses, <https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf>, 16.01.2021.
  • IMF (2019), Treatment of Crypto Assets in Macroeconomic Statistics, <https://www.imf.org/external/pubs/ft/bop/2019/pdf/Clarification0422.pdf>, 12.02.2021.
  • IRGLOBAL (2018), Crypto Currency Taxation in Croatia, <https://www.irglobal.com/article/cripto-currency-taxation-in-croatia/>, 14.01.2021.
  • Koinly (2020), Cryptocurrency Taxes in Australia: The 2020 Guide, <https://koinly.io/guides/crypto-tax-australia/>, 16.01.2021.
  • Koinly (2020), Cryptocurrency Taxes in the UK: The 2020 Guide, <https://koinly.io/guides/hmrc-cryptocurrency-tax-guide/#:~:text=There%20are%20no%20taxes%20on,when%20you%20eventually%20sell%20them>, 18.01.2021.
  • Konst, S. (2000), Secure Log Files Based on Cryptographically Concatenated Entries, <http://www.konst.de/stefan/seclog.pdf>, 16.01.2021.
  • Library of Congress (2021), Taxation of Cryptocurrency Block Rewards in Selected Jurisdictions, <https://www.loc.gov/law/help/cryptocurrency/block-rewards/taxation-block-rewards.pdf>, 14.02.2021.
  • Majumdar, A.K. (2019), “Potential Applications for Broadband Global Internet Connectivity”, in: A.K. Majumdar (ed.), Optical Wireless Communications for Broadband Global Internet Connectivity (259-268), Elsevier.
  • McClure, Z. (2020), Crypto Taxes in South Africa, <https://tokentax.co/guides/crypto-taxes-in-south-africa/>, 11.02.2021.
  • Mitchell, R. (2019), France Won’t Tax Crypto-To-Crypto Trades, But Will Hit Gains Cashed Out, <https://news.bloombergtax.com/daily-tax-report-international/france-wont-tax-crypto-to-crypto-trades-but-will-hit-gains-cashed-out>, 17.01.2021.
  • Nakamoto, S. (2008), Bitcoin: A Peer-To-Peer Electronic Cash System, <https://bitcoin.org/bitcoin.pdf>, 05.01.2021.
  • OECD (2015), Addressing the Tax Challenges of The Digital Economy Action 1 - 2015 Final Report, <http://www.oecd.org/tax/addressing-the-tax-challenges-of-the-digital-economy-action-1-2015-final-report-9789264241046-en.htm>, 05.01.2021.
  • OECD (2020), Taxing Virtual Currencies: An Overview of Tax Treatments and Emerging Tax Policy Issues, <https://www.oecd.org/tax/tax-policy/taxing-virtual-currencies-an-overview-of-tax-treatments-and-emerging-tax-policy-issues.pdf>, 10.01.2021.
  • Portugalhomes (2020), Cryptocurrency Is Tax-Free in Portugal, <https://www.portugalhomes.com/news/article/170/cryptocurrency-is-tax-free-in-portugal#:~:text=The%20Portuguese%20Tax%20Authority%20(PTA,exchange%20will%20be%20tax%2Dfree>, 02.01.2021.
  • Sia-Partners (2020), What Is Virtual Money, <https://www.sia-partners.com/en/news-and-publications/from-our-experts/what-virtual-money>, 14.02.2021.
  • Sumsub (2021), Turkey Enacts Its First Crypto Regulations: Here’s How Businesses Can Adapt, Legal & Compliance, <https://sumsub.com/blog/crypto-regulations-turkey/>, 06.01.2021.
  • UNCTAD (2019), Digital Economy Report 2019, <https://unctad.org/system/files/official-document/der2019_en.pdf>, 16.01.2021.
  • Winheller (2018), Bitcoin Taxation in Germany, <https://www.winheller.com/fileadmin/redaktion/dateien/downloads/vat-exemption-bitcoin-germany.pdf>, 16.01.2021.
  • Yereli, A.B & I.F. Orkunoğlu-Şahin (2018), “Cryptocurrencies and Taxation”, in: Proceedings of the 5th International Annual Meeting of Sosyoekonomi Society, 25-27 October 2018.
  • Zelaya, D. (2020), Cryptocurrency Taxes USA: Your Guide to Crypto Taxes for 2020, <https://www.exodus.com/blog/cryptocurrency-taxes-usa/>, 18.01.2021.
  • Zmudzinski, A. (2019), France Won’t Tax Crypto-Only Trades, Will Tax Crypto-To-Fiat Sales, <https://cointelegraph.com/news/france-wont-tax-crypto-only-trades-will-tax-crypto-to-fiat-sales>, 14.02.2021.
  • Zwijnenburg, J. (2020), Issues Note on the Recording of Cryptocurrencies Without a Corresponding Liability in The System of National Accounts, <http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=COM/SDD/DAF(2020)2&docLanguage=En>, 14.01.2021.
  • Zwijnenburg, J. et al. (2020), “The recording of crypto assets in the system of national accounts”, in: Proceedings of the 14th Meeting of the Advisory Expert Group on National Accounts, 5-9 October 2020.

Sanal/Kripto Varlıkların/Paraların Vergilendirilmesi

Year 2022, Volume: 30 Issue: 52, 37 - 54, 28.04.2022
https://doi.org/10.17233/sosyoekonomi.2022.02.03

Abstract

Dijital ekonomi kendi unsurlarını üretmektedir. Bu unsurlardan en önemlisi tam olarak kavramsallaştırılamayan dijital veya sanal ortamlarda üretilen paralar/varlıklardır. Vergilendirme açısından en önemli sorun, bu varlıkların tanımlanması, herkesin onayladığı bir terimin belirlenmesi ve sınıflandırılmasıdır. Bu çalışmanın amacı kripto varlıkların tanımlanması, sınıflandırılması ve vergilendirilmesine yönelik gelinen mevcut durumu tespit etmektir. Bu doğrultusunda Türkiye ve çeşitli ülke uygulamaları ve OECD önerileri incelenmiştir. Bu konuda henüz bir terim birliğine ulaşılamamış olup, OECD’nin Ekim 2020’de yayınladığı raporda bu varlıklar için sanal para terimi kullanılmıştır. Bu çalışmanın sonucunda bazı ülkelerde halen yasadışı olarak kabul edilen sanal varlıkların vergilendirilmesi konusunda henüz bir uygulama birliği olmadığı tespit edilmiştir.

References

  • Alpago, H. (2018), “Bitcoin’den Selfcoin’e Kripto Para”, Journal of International Scientific Researches, 3(2), 411-428.
  • Bank of England (2021), What Are Cryptoassets (Cryptocurrencies)?, <https://www.bankofengland.co.uk/knowledgebank/what-are-cryptocurrencies>, 15.02.2021.
  • Bankrate (2021), What is a cryptocurrency wallet?, <https://www.bankrate.com/glossary/c/cryptocurrency-wallet/>, 03.01.2022.
  • BCS (2016), The Digital Economy, <https://policy.bcs.org/sites/policy.bcs.org/files/digital%20economy%20Final%20version_0.pdf>, 16.01.2021.
  • BTV (2019), Blockhain İçin Kavramsal Mimari, <https://bctr.org/wp-content/uploads/2019/04/04-Blockchain-icin-kavramsal-mimari.pdf>, 16.02.2021.
  • Çarkacıoğlu, A. (2016), Kripto-Para Bitcoin, <https://www.ekovizyon.com.tr/wp-content/uploads/2017/01/SPK-Bitcoin-Raporu.pdf>, 22.01.2021.
  • Casey, A. et al. (2020), Reviewing the Boundary Between Valuables and Financial Assets in SNA 2008 In the Light of Bitcoin and Similar Crypto-Assets and The UK Experience of Non-Monetary Gold, <https://unstats.un.org/unsd/nationalaccount/aeg/2020/M14_BD2_Boundary_Valuables_Financial_Crypto_Assets.PDF>, 13.01.2021.
  • Castrén, O. et al. (2020), Digital Currencies in Financial Networks, <https://www.eba.europa.eu/sites/default/documents/files/document_library/887439/Digital%20currencies%20in%20financial%20networks.pdf>, 16.01.2021.
  • CFI (2021), What Is Virtual Currency?, <https://corporatefinanceinstitute.com/resources/knowledge/other/virtual-currency/>, 16.02.2021.
  • Chaum D.L. (1982), “Computer Systems Established, Maintained, And Trusted by Mutually Suspicious Groups”, Thesis, Berkeley: University of California.
  • Chaum, D. (1983), “Blind Signatures for Untraceable Payments”, in: D. Chaum et al. (eds.), Advances in Cryptology (199-203), Boston: Springer.
  • Chaum, D. et al. (1990), “Untraceable Electronic Cash”, in: S. Goldwasser (ed.), Advances in Cryptology - CRYPTO '88 (319-327), New York: Springer-Verlag.
  • CIAT (2020), Cryptocurrency Taxation: How to Take a Step Forward, <https://www.ciat.org/tributacion-de-las-criptomonedas-como-dar-un-paso-adelante/?lang=en,%20https://koinly.io/guides/crypto-tax-australia/>, 12.01.2021.
  • Coindesk (2021), Bitcoin (USD) Price, <http://www.coindesk.com/price/>, 24.02.2021.
  • Crypyopara (2021), Dijital Para Nedir, Coin Yatırım & Kazanç Etme Yolları, <http://cryptopara.net/kripto-para-madenciligi-hakkinda-haberler-bilgiler/8-blog/24-dijital-para-coin-nedir-nasil-kazanc-elde-ettirir.html>, 11.02.2021.
  • Dursun, T. (2021), Blokzincir Teknolojisi, <https://bag.org.tr/?p=734>, 12.02.2021.
  • EFRAG (2020), Accounting for Crypto-Assets (Liabilities): Holder and Issuer Perspective, <http://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/EFRAG%2520Discussion%2520Paper-Accounting%2520for%2520Crypto-Assets%2520%28Liabilities%29-%2520July%25202020.pdf>; 14.01.2021.
  • Ersoy, E.C. & E. Kartın (2021), Turkey: Taxation of Cryptocurrency, <https://www.mondaq.com/turkey/fin-tech/1111456/taxation-of-cryptocurrency>, 05.01.2022.
  • Esener, E. (2017), Bitcoin (Dijital) Para Nedir?, <http://startuphukuku.com/bitcoin-nedir/>, 07.01.2021.
  • ESMA (2020), Initial Coin Offerings and Crypto-Assets, <https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf>, 14.01.2021.
  • Haber, S. & W. Stornetta (1991), “How to Time-Stamp A Digital Document”, J. Cryptology, 3, 99-111.
  • Hg.org (2021), Bitcoin - Facts, Mining, and Investment Safety in Turkey, <https://www.hg.org/legal-articles/bitcoin-facts-mining-and-investment-safety-in-turkey-45836>, 05.01.2022.
  • Houben, R. & A. Snyers (2020), Crypto-Assets Key Developments, Regulatory Concerns and Responses, <https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf>, 16.01.2021.
  • IMF (2019), Treatment of Crypto Assets in Macroeconomic Statistics, <https://www.imf.org/external/pubs/ft/bop/2019/pdf/Clarification0422.pdf>, 12.02.2021.
  • IRGLOBAL (2018), Crypto Currency Taxation in Croatia, <https://www.irglobal.com/article/cripto-currency-taxation-in-croatia/>, 14.01.2021.
  • Koinly (2020), Cryptocurrency Taxes in Australia: The 2020 Guide, <https://koinly.io/guides/crypto-tax-australia/>, 16.01.2021.
  • Koinly (2020), Cryptocurrency Taxes in the UK: The 2020 Guide, <https://koinly.io/guides/hmrc-cryptocurrency-tax-guide/#:~:text=There%20are%20no%20taxes%20on,when%20you%20eventually%20sell%20them>, 18.01.2021.
  • Konst, S. (2000), Secure Log Files Based on Cryptographically Concatenated Entries, <http://www.konst.de/stefan/seclog.pdf>, 16.01.2021.
  • Library of Congress (2021), Taxation of Cryptocurrency Block Rewards in Selected Jurisdictions, <https://www.loc.gov/law/help/cryptocurrency/block-rewards/taxation-block-rewards.pdf>, 14.02.2021.
  • Majumdar, A.K. (2019), “Potential Applications for Broadband Global Internet Connectivity”, in: A.K. Majumdar (ed.), Optical Wireless Communications for Broadband Global Internet Connectivity (259-268), Elsevier.
  • McClure, Z. (2020), Crypto Taxes in South Africa, <https://tokentax.co/guides/crypto-taxes-in-south-africa/>, 11.02.2021.
  • Mitchell, R. (2019), France Won’t Tax Crypto-To-Crypto Trades, But Will Hit Gains Cashed Out, <https://news.bloombergtax.com/daily-tax-report-international/france-wont-tax-crypto-to-crypto-trades-but-will-hit-gains-cashed-out>, 17.01.2021.
  • Nakamoto, S. (2008), Bitcoin: A Peer-To-Peer Electronic Cash System, <https://bitcoin.org/bitcoin.pdf>, 05.01.2021.
  • OECD (2015), Addressing the Tax Challenges of The Digital Economy Action 1 - 2015 Final Report, <http://www.oecd.org/tax/addressing-the-tax-challenges-of-the-digital-economy-action-1-2015-final-report-9789264241046-en.htm>, 05.01.2021.
  • OECD (2020), Taxing Virtual Currencies: An Overview of Tax Treatments and Emerging Tax Policy Issues, <https://www.oecd.org/tax/tax-policy/taxing-virtual-currencies-an-overview-of-tax-treatments-and-emerging-tax-policy-issues.pdf>, 10.01.2021.
  • Portugalhomes (2020), Cryptocurrency Is Tax-Free in Portugal, <https://www.portugalhomes.com/news/article/170/cryptocurrency-is-tax-free-in-portugal#:~:text=The%20Portuguese%20Tax%20Authority%20(PTA,exchange%20will%20be%20tax%2Dfree>, 02.01.2021.
  • Sia-Partners (2020), What Is Virtual Money, <https://www.sia-partners.com/en/news-and-publications/from-our-experts/what-virtual-money>, 14.02.2021.
  • Sumsub (2021), Turkey Enacts Its First Crypto Regulations: Here’s How Businesses Can Adapt, Legal & Compliance, <https://sumsub.com/blog/crypto-regulations-turkey/>, 06.01.2021.
  • UNCTAD (2019), Digital Economy Report 2019, <https://unctad.org/system/files/official-document/der2019_en.pdf>, 16.01.2021.
  • Winheller (2018), Bitcoin Taxation in Germany, <https://www.winheller.com/fileadmin/redaktion/dateien/downloads/vat-exemption-bitcoin-germany.pdf>, 16.01.2021.
  • Yereli, A.B & I.F. Orkunoğlu-Şahin (2018), “Cryptocurrencies and Taxation”, in: Proceedings of the 5th International Annual Meeting of Sosyoekonomi Society, 25-27 October 2018.
  • Zelaya, D. (2020), Cryptocurrency Taxes USA: Your Guide to Crypto Taxes for 2020, <https://www.exodus.com/blog/cryptocurrency-taxes-usa/>, 18.01.2021.
  • Zmudzinski, A. (2019), France Won’t Tax Crypto-Only Trades, Will Tax Crypto-To-Fiat Sales, <https://cointelegraph.com/news/france-wont-tax-crypto-only-trades-will-tax-crypto-to-fiat-sales>, 14.02.2021.
  • Zwijnenburg, J. (2020), Issues Note on the Recording of Cryptocurrencies Without a Corresponding Liability in The System of National Accounts, <http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=COM/SDD/DAF(2020)2&docLanguage=En>, 14.01.2021.
  • Zwijnenburg, J. et al. (2020), “The recording of crypto assets in the system of national accounts”, in: Proceedings of the 14th Meeting of the Advisory Expert Group on National Accounts, 5-9 October 2020.
There are 45 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Tamer Budak 0000-0003-0062-2734

Güneş Yılmaz 0000-0002-1005-2950

Publication Date April 28, 2022
Submission Date May 18, 2021
Published in Issue Year 2022 Volume: 30 Issue: 52

Cite

APA Budak, T., & Yılmaz, G. (2022). Taxation of Virtual/Crypto Assets/Currencies. Sosyoekonomi, 30(52), 37-54. https://doi.org/10.17233/sosyoekonomi.2022.02.03
AMA Budak T, Yılmaz G. Taxation of Virtual/Crypto Assets/Currencies. Sosyoekonomi. April 2022;30(52):37-54. doi:10.17233/sosyoekonomi.2022.02.03
Chicago Budak, Tamer, and Güneş Yılmaz. “Taxation of Virtual/Crypto Assets/Currencies”. Sosyoekonomi 30, no. 52 (April 2022): 37-54. https://doi.org/10.17233/sosyoekonomi.2022.02.03.
EndNote Budak T, Yılmaz G (April 1, 2022) Taxation of Virtual/Crypto Assets/Currencies. Sosyoekonomi 30 52 37–54.
IEEE T. Budak and G. Yılmaz, “Taxation of Virtual/Crypto Assets/Currencies”, Sosyoekonomi, vol. 30, no. 52, pp. 37–54, 2022, doi: 10.17233/sosyoekonomi.2022.02.03.
ISNAD Budak, Tamer - Yılmaz, Güneş. “Taxation of Virtual/Crypto Assets/Currencies”. Sosyoekonomi 30/52 (April 2022), 37-54. https://doi.org/10.17233/sosyoekonomi.2022.02.03.
JAMA Budak T, Yılmaz G. Taxation of Virtual/Crypto Assets/Currencies. Sosyoekonomi. 2022;30:37–54.
MLA Budak, Tamer and Güneş Yılmaz. “Taxation of Virtual/Crypto Assets/Currencies”. Sosyoekonomi, vol. 30, no. 52, 2022, pp. 37-54, doi:10.17233/sosyoekonomi.2022.02.03.
Vancouver Budak T, Yılmaz G. Taxation of Virtual/Crypto Assets/Currencies. Sosyoekonomi. 2022;30(52):37-54.