CFA owners can receive tax benefits in the manner of IIS

The Central Bank believes that this will increase the investment attractiveness of digital rights for citizens

The Central Bank plans to harmonize the taxlegislation for “hybrid” digital rights with the procedure for taxing tokenized assets (goods (works, services) that are the subject of the execution of such digital rights), writes the Central Bank in a report for public hearings “Development of the digital assets market in the Russian Federation”.

The regulator would like to exclude the arising innow tax arbitrage and provide issuers and investors of digital rights with the same taxation conditions as when investing directly in tokenized assets (for example, in precious metals), it states. He proposes to establish a procedure for taxing transactions with utilitarian digital rights (UDR), and even developed a draft law that establishes the procedure for taxing VAT and personal income tax on transactions related to the implementation and implementation of DRM, and exempts investment platform operators from VAT.

In addition, the Central Bank intends to discuss withinterested federal executive authorities and market participants on the need to provide tax incentives similar to IIS for owners of long-term DFAs, which will help increase the investment attractiveness of digital rights for citizens. IIA owners are entitled to receive one of the investment tax deductions: in the amount of funds deposited in IIA, or in the amount of a positive financial result received from transactions recorded in IIA. The regulator has not yet provided details for the CFA.

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