Russia Proposes New Tax Rules for Cryptocurrency Transactions and Mining
The Russian government has submitted a bill to the State Duma introducing taxation on personal income from transactions involving digital currency, foreign digital assets, and debt-based digital financial assets (DFAs) traded on organized markets. The draft law exempts cryptocurrency exchanges and depositories from value-added tax (VAT) and establishes rules for levying personal income tax (PIT) on earnings from the sale of digital assets.
The amendments will be made to Russia's Tax Code. The document proposes exempting digital depositories and cryptocurrency exchange services from VAT. Additionally, the sale of non-deliverable foreign digital assets that represent purely monetary claims will not be subject to taxation.
For personal income taxation, the bill designates tax agents as entities facilitating payments for transactions involving digital currency and foreign digital assets. A new article, 214.12, will be added to the Tax Code, introducing PIT on income from the sale or other disposal of digital currency, including exchanges.
Income in the form of digital currency obtained through mining will be calculated based on market quotations. The Cabinet proposes defining the market rate as either the weighted average price set by a Russian market organizer or the closing price determined by a foreign trading platform.
The amendments also allow for the offsetting of positive and negative financial results from digital currency transactions within a single tax period, without carrying forward losses to future periods. For debt-based DFAs traded on organized markets, losses may be carried forward.
Furthermore, the document stipulates that income and expenses from digital currency transactions—excluding mining—under foreign trade contracts will be included in the general corporate profit tax base.
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