May 15, 2021

What is the correct way to pay taxes on cryptocurrency in Russia?

What is the correct way to pay taxes on cryptocurrency in Russia?

Since January 1, 2021, cryptocurrency has been recognized as property on the territory of Russia. This allows us to conclude formal transactions with its use.Russians have such an opportunity thanks to the law "On financial digital assets", which entered into force at the beginning of this year. However, the document prohibits the use of cryptocurrencies as a means of payment, writes RBC Crypto.

Recognition of digital assets as property has led tothe fact that cryptocurrencies in Russia have begun to be taxed. This is reasonable, since taxes must be paid on any income that is subject to taxation, says Yuri Brisov, a member of the commission on legal support of the digital economy of the Moscow branch of the Russian Bar Association.

“For example, if a citizen earned 100 rubles, he must give 13 rubles to the state, but if the same amount in cryptocurrency, then no? It would be unfair ", - the expert noted.

When do you have to pay tax?

Special tax treatment for transactions withcryptocurrency is not provided for now, said Dmitry Kirillov, a teacher at Moscow Digital School. He explained that taxpayers have to be guided by the explanations of the Ministry of Finance, according to which the declaration of income is also carried out in a general manner.

Based on the results of the financial year (until April 30),a Russian citizen working with a cryptocurrency must establish whether he was able to make a profit as a result of transactions for the purchase and sale of digital coins, and then pay tax on personal income from this profit, explained Yuri Brisov. According to him, for this you need to submit to the Federal Tax Service the personal income tax form-3, attaching extracts from the cryptocurrency wallet and a printout with exchange rates on the date of exchanging cryptocurrency for fiat currency (Russian ruble). You can submit documents to the Federal Tax Service at the place of registration (in person or by mail), or through the taxpayer's personal account on the department's website.

What should you pay attention to?

At the moment, the status has not yet been determinedcryptocurrency in terms of value added tax (VAT) when it is sold by organizations and individual entrepreneurs, added Dmitry Kirillov. According to him, now the second reading of the bill is being held in the State Duma, which exempts the implementation of cryptocurrency from VAT. However, the mechanism for paying value added tax on digital assets has not yet been identified, the expert noted.

The method of determining income incryptocurrency, noted Yuri Brisov. According to him, the current legislation does not indicate whether it is possible not to consider a change in the price of a cryptocurrency as income if it is not exchanged for fiat.

“There is no official exchange rate.The form of notification of the Federal Tax Service about the fact of acquiring cryptocurrency is not explained in the law or in the letters of the department. There are a lot of cons. De facto, the law is still very far, it is acceptable for the stage "- added a member of the commission on legal support of the digital economy of the Moscow branch of the Russian Bar Association.

Individuals, organizations and individualsDmitry Kirillov recommends that entrepreneurs pay special attention to documenting cryptocurrency transactions. In the absence of documentary evidence of the purchase of cryptocurrency (for example, from hands for cash), deducting the purchase costs, the tax authorities will most likely refuse, he said.

Punishment for non-payment of tax

A citizen who has not informed the tax authorities aboutpossession of cryptocurrency, is deprived of the right to judicial protection, said Yuri Brisov. He claims that this is contrary to the Constitution of the Russian Federation, which says that every citizen has the right to a defense in court. All fines provided for by the Tax Code of the Russian Federation and which are applied to those who have been caught in non-payment of taxes also apply to operations with cryptocurrency, Yuri Brisov emphasized.

“It's just not clear yet how these sanctions will be applied in practice. The tax authority has too much room for maneuver. "- he added.

Regulation perspective

Now the State Duma is considering a bill ontaxation of cryptocurrencies. The document provides for the need to inform the tax authorities about the possession of digital currencies if the amount of transactions on them per year exceeds 600 thousand rubles. For failure to provide data, the tax authorities will be able to fine violators by 10% of the amount of digital currency write-off or the amount of digital currency received by the person who controls it.

Also, the deputies propose to establish a fine of 50thousand rubles for individuals and organizations that did not provide information on obtaining the right to dispose of digital currency within the specified timeframe, including from third parties. On February 17, this bill was approved by the deputies in the first reading.

In February, the head of the State Duma committee onLegislation Pavel Krasheninnikov proposed to legalize cryptocurrencies on the territory of Russia, regulating their turnover in the same way as the turnover of narcotic substances. According to Krasheninnikov, now the government takes the position "we do not want to legalize cryptocurrency, but we want to receive taxes." The current legislation adopted in relation to cryptocurrencies still does not answer the question of whether trading in cryptocurrencies in Russia is considered legal or not, the deputy added.

What does a crypto investor need to do?

  1. Summarize the results of the financial year;
  2. Calculate the income that cryptocurrency transactions brought during this period;
  3. Submit by April 30 to the Federal Tax Serviceservice the personal income tax form-3 and attach to it extracts from the cryptocurrency wallet and a printout with exchange rates on the date of exchange of cryptocurrency for fiat currency (Russian ruble);
  4. Pay 13% tax by July 15th;
  5. Document all your cryptocurrency transactions in order to be able to provide information on working with digital assets to the tax authorities if necessary.

Where is it more profitable to buy cryptocurrency? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposit and withdrawal of funds in rubles, hryvnias, dollars and euros.

Site reliability is primarily determined bytrading volume and number of users. By all key metrics, Binance is the largest cryptocurrency exchange in the world. Binance is also the most popular cryptocurrency exchange in Russia and the CIS, since it has the largest turnover of funds and supports transfers in rubles from bank cards Visa / MasterCard and payment systems QIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

# Exchange: Website: Rating:
1 Binance (Editor's Choice) 9.7
2 Bybit 7.5
3 OKEx 7.1
4 Exmo 6.9
5 Huobi 6.5

The criteria by which the rating is set in our rating of crypto-exchanges:

  • Work reliability - stability of access to all platform functions, including uninterrupted trading, deposit and withdrawal of funds, as well as the period of work on the market and the daily trading volume.
  • Commissions - the size of the commission for trading operations within the site and the withdrawal of assets.
  • Feedback and support - we analyze user reviews and the quality of technical support.
  • Convenience of the interface - we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
  • Platform features - availability of additional features - futures, options, staking, etc.
  • final grade - the average number of points for all indicators, determines the place in the rating.

What is the correct way to pay taxes on cryptocurrency in Russia?


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