Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament – The State Duma, Russia’s lower house of parliament, has received a draft revising the country’s tax laws to include rules relating to cryptocurrencies. The Act is designed to control sales and profit taxation in the country’s digital asset market.
The Russian federal government has proposed a draft law to the State Duma establishing guidelines for the taxation of cryptocurrency transactions. The law will make required changes to Russia’s tax code in order to address a number of unanswered concerns.
The application of value-added tax is one of the factors. According to the authors, VAT should be paid on services offered by operators of platforms generating or exchanging digital financial assets, which in current Russian law includes cryptocurrencies.
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According to Forklog, the difference between the token’s sale and purchase price will determine the tax base for “digital rights,” a legal term that covers security and utility tokens.
Russian entities that possess tokens will be taxed at a rate of 13% on their digital rights’ revenues, while foreign firms will be taxed at a rate of 15%. By February 1 of the following year, issuers of digital financial assets will be required to file tax reports on the involved parties as well as the transactions made during the current year.
According to Andrey Tugarin, managing partner at the law firm GMT Legal, the rule will not affect Russians who have cryptocurrency. The bill, he continued, solely affects the economy for digital financial assets and digital rights. It introduces a tax regime that is similar to that which applies to the securities market.
In addition to the tax bill, the Russian government is prepared to present a new draft law “On Digital Currency,” which the Ministry of Finance recently updated and submitted to the cabinet. The agency supports cryptocurrency legalization, whilst the Bank of Russia opposes it.
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It is expected that both pieces of legislation will be passed at the State Duma’s spring session. They will add to the statute “On Digital Financial Assets,” which took effect in January 2021 but only partially controlled the country’s crypto sector, to provide a full legal framework for cryptocurrencies.