According to the development reported today by RIA Novosti, Russia’s lower government house, the State Duma, approved the new law on taxation of cryptocurrencies.
Russia will tax on cryptocurrency earnings
The bill proposes to recognize cryptocurrencies as property for taxation purposes. Prime Minister Mikhail Mishustin previously spoke of bringing legal protections and rights to cryptocurrency holders in court disputes.
Cryptocurrency users will now have to declare their cryptocurrency income in excess of 600,000 rubles ($ 8,184) per year.
If they do not declare, 10% of the undeclared amount may be converted into a fine or their funds may be deleted completely.
It was reported that if the tax is not paid or is paid incompletely, a penalty of 40% of the required tax amount will be applied.
There is some confusion
Before the second reading of the bill, the State Duma Committee on Budget and Taxes questions the validity of the Federal Tax Service’s right to establish the procedure for determining the market price of a crypto. Because the situation in question does not comply with the current provisions of the Tax Code.
Crypto assets will not be a legal means of payment under the proposed amendment to the tax law. Therefore, it is difficult to say that the law in question constitutes the expected clarity regarding the current legal status of cryptocurrencies.