March 8, 2021

Market News The State Duma introduced a bill on the taxation of cryptocurrencies

The Government of the Russian Federation has submitted to the State Duma a bill aimed at Introduction from January 1 In Russia legislation on taxation in the circulation of cryptocurrencies.

The document amends the Tax Code, which recognize the digital currency as propertyThis will allow cryptocurrency owners to rely on legal protection in case of any illegal actions, as well as to defend their property rights in court.

Revenues from digital currency transactions will be subject to income tax or NDFL. At the same time, the digital currency will not be subject to depreciationand operations related to its handling will not bebe recognized as subject to VAT.

The bill also gives tax authorities the ability to identify signs indicating a possible breach of tax laws, to demand statements from banks on the accounts of individualsthat were used in connection with digital currency transactions.But this will be possible only if the consent of the head or deputy head of a higher tax authority or the Federal Tax Service.

Citizens of Russia and permanent residents of Russiaon the basis of a residence permit, foreign citizens and stateless persons, Russian organizations, their branches and representative offices, as well as international organizations established in the territory of the Russian Federation, which have the right to dispose of digital currency recorded on electronic wallets, will be required to report to the tax authorities about such a right, turnover and balance, in the case of if the amount of revenue or write-offs of digital currency for the year exceeds600,000 rubles.

At the same time, it is envisaged that tax liability for improper failure to submit (untimely submission) or reporting of transactions (civil-legal transactions) with the digital currency and its balances containing inaccurate information.

The fine in this case, according to the document, will be 10% of the two sums Digital currency receipts to a person or the amount of the digital currency write-off by a person who has the right to dispose, including through third parties, of this digital currency, the information of which has not been provided for the corresponding year.

A for improper failure to report to the tax authority within the deadline about obtaining the right to dispose ofincluding through third parties, digital currency, record transactions (civil transactions) with digital currency and digital currency balances established fine of 50,000 rubles.

In the case of the same non-payment or incomplete payment of tax amounts by the taxpayer as a result of the non-inclusion in the tax base of profits (income) of operations, which were calculated using digital currency, the fine, according to the bill, will amount to 40% of the amount of unpaid tax.