Taxation of derivatives

After the abandonment of Bretton Woods system, finance world has exposed to certain isks; such as, foreign currency exchange rate, interest rate, and price changes. Such changes nade all the economic units to take into account exchange rates, interest, and price risks in heir decisions regarding their future actions. New financial tools have been developed to ivoid or to decrease the impact of financial risks. Some of the most important tools called as lerivative products, are forwards, futures, swaps, and options. In the world financial markets of today, derivative products, which are exchanged in lerivative markets, can be characterized as a major force because significant amount of exchanges have been conducted by using them. Foreign exchange of forwards and swaps, ^vhich are kinds of derivative products, have began to be used widely in our country among.ast years. However, in Turkey, there is still an ambiguity whether derivative products would 3e taxed or not, which is resulted from the lack of arrangements regarding law and tax. In this sense, this study aims to evaluate derivative products under the perspective of current Turkish law and analyse the taxation methods of incomes, which are obtained by using these products.