Russian lawmakers approved amending legislation to tax the use of digital assets for transactions. This legislation relates to business transactions using cryptocurrencies or tokens. Russian companies may find their burden less than that of foreign businesses in some instances.
Russian Duma passes law to tax crypto transactions
The State Duma is the Russian lower house and approved a bill to amend the Russian Federation’s Tax Code to permit Moscow authorities to tax digital assets.
It clarifies many aspects of cryptocurrency taxation, since DFA is currently Russian law’s main terms. A new law “On Digital Currency” should expand the legal framework and definitions for crypto assets this fall.
Forklog crypto news site stated that services offered by platforms which issue, control or keep track of DFA movement will not be included in the Value-Added Tax (VAT) as with securities.
The report explained that when exercising digital rights (the legal term that includes security and utility tokens), the tax base is the difference between the purchase price and the sale price for the digital right.
Russian legal entities holding digital tokens will receive 13% for the amount they earn, while foreign-based corporations will be assessed at 15%, according to the new tax laws. Local businesses have a slight advantage.
Initial submission of the crypto tax legislation to the State Duma was in April. The law passed first reading on May 1. It was approved also by the parliamentary new legislation and financial markets committees. Legal experts at the time stated that tax rules did not apply to crypto private holdings.
Russian officials have been working this year to comprehensively regulate the country’s crypto space. In February, the Ministry of Finance proposed a law on digital currencies. However, the adoption of this law has been delayed due to ongoing discussions about the legal status of future decentralized cryptocurrency like bitcoin.
What do you think Russia will do to crypto-related laws by 2022? Comment below.
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