Russian Federal Government Submitted a Draft Law Regulating Aspects of Crypto

Key Takeaways:

  • The law will amend many Russian Tax codes.
  • 2% Lower taxes for Russian companies vis-a-vis foreign companies.
  • Bank of Russia opposes the law.

The Russian federal government has proposed a draft law to the State Duma. The daughter law establishes guidelines for the taxation of cryptocurrency transactions. The law will make required changes to Russia’s tax code. It will do so in order to address a number of unanswered concerns.

The application of value-added tax (VAT) is one of the factors. According to the authors, VAT should be paid on services provided by operators of platforms issuing or exchanging digital financial assets (DFA), which in current Russian law includes cryptocurrencies.

Binance CEO Zhao acknowledged the law:

Changpeng Zhao
Changpeng Zhao’s Tweet

According to Forklog, the tax base for “digital rights,” another legal description that includes security and utility tokens, will be decided by the difference between the token’s sale and acquisition price.

Russian entities that possess tokens will be taxed at a rate of 13% on their digital rights’ revenues. While foreign firms will be taxed at a rate of 15%. By February 1 of the following year, issuers of digital financial assets will be required to file tax reports on the parties involved and the transactions made during the current year.

In addition to the tax bill, the Russian government is prepared to present a new draught law “On Digital Currency,” which the Ministry of Finance recently updated and submitted to the cabinet. The agency supports cryptocurrency legalisation, whilst the Bank of Russia opposes it.

Chaahat Girdhar
Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.

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