March 4, 2021

The law on taxation of cryptocurrencies in Russia will be finalized

The law on taxation of cryptocurrencies in Russia will be finalized

It is not clear from the text of the draft law on taxation of transactions with cryptocurrency what tax will be levied digital assets, and the imposed fines are unreasonable. This is stated in the conclusion of the legal department of the State Duma of the Russian Federation.

The experts noted that in the documentdigital currency was removed from value added tax and profit tax. In this regard, they recommended to additionally substantiate the recognition of cryptocurrency as an object of taxation.

The bill introduces fines for citizens andorganizations that did not promptly report the right to dispose of the cryptocurrency, the turnover of funds and the balance, if the amount of receipts or withdrawals for the year exceeded the equivalent of 600,000 rubles.

If the payer did not include receipts incryptocurrency to the tax base, the amount of the fine will be 40% of the unpaid tax. For failure to provide a report on the receipt or write-off of digital currency, it is suggested to charge 10% of the larger amount - write-off or account balance. If the information is sent out of time, the fine will be 50,000 rubles.

"The explanatory note contains no argumentationthe amount of fines provided. Arbitrary regulation of such relations is unacceptable. In addition, the document provides for various fines for the same offense - failure to submit a report on transactions with digital currency and its balances to the tax authority ", - the conclusion says.

The document grants taxpayers the right to inform about the ability to dispose of digital currency (including through third parties), submit reports on transactions with it and account balances.

"However, based on the essence of the bill, the above is not a right, but an obligation of the taxpayer.", - said the experts.

The IRS is empowered to requestbanks have statements of individual accounts that were used to conduct transactions with digital currency, in case of suspicion of violation of the law. However, the draft does not contain clarifications within the framework of what procedure the supervisory authority can establish signs of such a violation.

Also, the document does not affect the taxation of digital financial assets.

Comments were sent to the RF State Duma Committee on Budget and Taxes.

Recall that the government-approved draft law on taxation of cryptocurrencies was submitted to the State Duma in December 2020.

The law on taxation of cryptocurrencies in Russia will be finalized

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