To deduct crypto fraud losses from the tax base: (1) Prosecutor's decision (non-prosecution or conviction), (2) Expert report, (3) Bank receipts, (4) Crypto wallet screenshots.
Which tax type is offset?
- Real person income tax (Income Tax Law Article 74) — other commercial earnings.
- Legal entity corporate tax (KVK article 16) - goes to income account.
List of documents
How long is the process?
- Prosecutor's Office non-prosecution / indictment: 6-18 months.
- Tax offset declaration: Before year-end declaration.
- Tax office review: 3-6 months.
Is fake stock market loss disputed?
Yes, fake stock market losses can be rejected on the grounds of abuse while the tax office searches for "commercial logic". For this reason, the prosecutor's office file is critical.
Is it refundable if offset?
If you have paid a tax advance, it will be refunded; If there is a tax debt, it is offset. However, there may be temporary collection during the tax office investigation period.
In which field is the expert report?
Forensic computer science and financial advisor expert witness parallel; One is attack, one is financial loss. CHFI / EnCE certified digital forensic + CPA financial advisor is recommended.
Is loss offset against crypto gains limited?
Currently, a separate tax regulation for crypto earnings is in the draft in Türkiye. It is currently evaluated in the commercial/self-employment income category.
Can the loss from 5 years ago be deducted?
No; There is a 5-year deduction limit on income tax; The loss must be deducted in the same year's declaration and can be carried over to the next 5 years.
Relevant legislation
- TCK art.158/1-f — Qualified fraud through information system.
- 5549 SK — MASAK crypto notification, account blocking.
- Crypto Asset Service Provider Communiqué — CBRT / CMB regulations.
- BRSA 2021/30 — Ban on using crypto in payments.
- HMK art.400-405 — Determination; on-chain evidence fixing.