Russia’s Crypto Tax Bill Passes First Reading at State Duma

Russia’s State Duma, the country’s lower house of government, has approved new legislation for the taxation of cryptocurrency in its first reading, RIA Novosti reported Wednesday.

• The bill proposes to recognize cryptocurrency as property for purposes of taxation, which Prime Minister Mikhail Mishustin has previously said would bring holders legal protection and rights in court disputes.
• Crypto users would be required to declare receipts of cryptocurrency exceeding 600,000 rubles ($8,184) per year.
• Failure to declare would result in a fine of 10% of the undeclared amount or a writing off of such currency, whichever is larger.
• A penalty of 40% of the required amount of tax will be applied for non-payment or incomplete payment of tax.
• Ahead of the bill’s second reading, the State Duma Committee on Budget and Taxes is questioning the validity of the Federal Tax Service’s right to establish the procedure for determining a crypto’s market price, as this does not comply with existing provisions of the Tax Code.
• Crypto assets will not be a legal means of payment under the proposed change to the tax law.

See also: Russia to Treat Crypto as a Taxable Property