Russian lawmakers are actively preparing new legislation for taxing cryptocurrencies like Bitcoin (BTC).
According to an official announcement by the Russian State Duma, the Duma’s Committee on State Building and Legislation has approved a bill on cryptocurrency taxation on Feb. 15. The new bill represents a set of amendments to the Russian federal tax code.
As part of the draft bill, the Russian government officially recognizes cryptocurrencies like Bitcoin as property, aiming to tax profits from crypto trading by Russian residents. The bill targets all domestic residents including citizens and foreigners, as well as Russian and international organizations established in the country.
According to the bill, the listed entities will have to report their crypto transactions if a total amount of incoming or outgoing transactions exceeds 600,000 rubles ($8,100) on an annual basis.
The bill establishes penalties for violations like late reporting as well as providing inaccurate information, suggesting fines of up to 10% from incoming or outgoing transactions. The suggested fine for non-payment or incomplete tax payment is 40% of the unpaid taxes, the draft bill reads.
Following the committee’s approval, the Russian Duma is expected to consider the new crypto legislation on Feb. 17, according to official state records.
Russia officially enforced its first crypto law “On Digital Financial Assets” in January 2021, prohibiting local residents from making payments in cryptocurrencies. Despite providing legal status to the crypto industry in Russia, the bill does not address certain areas of digital assets, such as taxation and mining, leaving the regulatory landscape relatively uncertain.
This post first appeared here: https://cointelegraph.com/news/russian-duma-prepares-bill-on-cryptocurrency-taxation