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

The Government of the Russian Federation introduced a bill to the State Duma aimed atIntroduction from January 1to Russianlegislation on taxation in the circulation of cryptocurrencies.

The document makes changes to the Tax Code, whichrecognize 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, digital currencywill not be subject to depreciationand operations related to its handling will not bebe recognized as subject to VAT.

The bill also provides the tax authorities with the opportunity, when identifying signs indicating a possible violation of tax legislation,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 on the territory of the Russian Federation that have the right to dispose of digital currency accounted for in electronic wallets,will be required to report to the tax authoritiesabout such right, turnover of funds and balance, in caseif the amount of revenue or write-offs of digital currency for the year exceeds600,000 rubles.

This provides for the establishmenttax liability for improper failure to submit (untimely submission) or reporting of transactions(civil transactions) with digital currency and its balances containing false information.

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

Afor improper failure to report to the tax authority within the deadline about obtaining the right to dispose of, including through third parties, digital currency, a report on transactions (civil transactions) with digital currency and balances of digital currency is establishedfine of 50,000 rubles.

In casenon-payment or incomplete payment of tax amounts by the taxpayeras a result of non-inclusion in the tax base of profits (income) from transactions for which settlements were carried out using digital currency,the fine, according to the bill, will amount to 40% of the amount of unpaid tax.

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