March 8, 2021

The Cabinet has introduced a draft law on the recognition of cryptocurrencies as property in the State Duma

The deputies will consider the proposals of the Russian government on taxation in the field of cryptocurrencies. Income from transactions with them will be subject to income tax or NDFL.

The Russian government has submitted a draft to the State Dumaamendments to the Tax Code, according to which cryptocurrency is recognized as property. If the document is adopted, income from operations with digital currency will be subject to income tax or personal income tax (PIT). At the same time, digital currency will not be subject to depreciation, and transactions related to its circulation will not be recognized as subject to value added tax (VAT).

The bill also allows tax authorities to require banks to claim statements on the accounts of individuals used in connection with digital currency transactions.Mandatory declaration will be subject to transactions with digital currency worth more than 600,000.rubles a year.

Responsibility is provided for the late reporting of digital currency transactions and its balances or a report containing inaccurate information.In this case, the fine will be 10% of the largest of the two amounts - the receipt of digital currency to the person or the amount of the write-off of the digital currency.In the case of non-payment or incomplete payment of tax, the fine will be 40% of theamount of unpaid tax.

Tax Billcryptocurrencies in the Russian Federation, was approved by the Russian government on November 26. Then, at the opening of the Cabinet meeting, Prime Minister Mikhail Mishustin noted that it is planned to consolidate the recognition of digital financial assets as property, the owners of which can count on legal protection in the event of any illegal actions, as well as defend their property rights in court.