Russia Takes Decision To Soften For Cryptocurrency Tax

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The Russian Ministry of Finance has proposed some regulations in favor of taxpayers for the cryptocurrency tax in preparation. In the past months, the draft law signed by President Vladimir Putin personally and expected to enter into force in 2021; It allows crypto money assets to be counted on the same level as physical assets.

According to the news shared by RBK, the Russian Ministry of Finance has proposed to soften the cryptocurrency taxes on the way in favor of taxpayers. According to the previous bill, individuals who made more than 100 thousand rubles of transactions with cryptocurrencies were required to report their assets to the state. According to the new draft prepared now, this figure has been increased to 600 thousand Russian rubles.

This softening proposal is a small part of the law expected to come into force next year. The purpose of the bill signed by President Vladimir Putin in July, is carried out through cryptocurrencies; It is explained as preventing illegal activities such as money laundering. With the entry into force of this law, digital currencies subject to tax will be granted physical asset status.

Mikhail Tretyak, an IT expert at the Digital Rights Center, told Coindesk that the new proposal, although softer than the previous draft, could still scare cryptocurrency entrepreneurs. Tretyak emphasized that part of the market could shift to Darknet or migration to countries with lighter regulations.

How will the tax process work in Russia?

According to the law, which is planned to enter into force until January 2021, funds for the next tax year must be reported to the national tax office by 30 April 2022 at the latest. The value of the reported cryptocurrencies will be calculated by the institution according to the prices at the time of the transaction and will be taxed over this value.

It is expected that the non-declaration and non-payment of the cryptocurrency assets owned will result in a fine. It is predicted that failure to make this declaration for 3 consecutive years will result in harsher penalties and tax evaders can be sentenced to 6 months to 3 years in prison.


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