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Author Topic: [2018-03-31] Russians Owe 13% Tax on Their Crypto Incomes  (Read 8 times)
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March 31, 2018, 07:21:21 PM
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Russian citizens are expected to pay 13 percent tax on their crypto-related incomes. Amendments to the tax code are currently being prepared. The exact rates should be confirmed by the end of the year. However, lawyers have warned that even now citizens risk criminal prosecution if they fail to report gains from dealings with cryptocurrencies.

Tax Obligations Apply to All Residents, Including Foreigners

Lawmakers are finalizing the legislation that should regulate crypto-related matters in the Russian Federation. Two bills have been filed in the State Duma in the last couple of weeks. The draft law “On Digital Financial Assets” legalizes blockchain technologies, mining operations and initial coin offerings. Another bill amends Russia’s Civil Code to introduce terms like “digital money” and protect the rights of crypto investors. The bills should be adopted by early summer but changes to the tax laws are expected to follow later.

In the meantime, private individuals in the Russian Federation are not free from the obligation to inform tax authorities on their income from cryptocurrency operations. The standard tax rate of 13 percent is applicable to gains from trading cryptos like bitcoin, according to a letter by the Finance Ministry. The clarification notice has been issued in response to a private request (№03-04-05/66994) filed in October last year.

Although the letter is just a recommendation, tax lawyers say it reflects the stance of the ministry and should be used as a reference before new rules are adopted, Kommersant reports. The income tax rate, and other crypto-related parameters of taxation will be officially confirmed with the amendments of the tax code. Russia’s parliament and the Ministry of Finance are currently working on these changes expected to take effect by the end of the year.

Until that happens, Russian citizens are required to report crypto income on their tax returns and pay the regular income tax which has a flat rate of 13 percent. Foreign nationals present in the Russian Federation for at least 183 days in a year are treated and taxed as permanent residents. In all other cases the rate is doubled to 30 percent. Dividends are taxed at 6 percent (15 percent for non-residents).

Continue reading >> https://news.bitcoin.com/russians-owe-13-tax-on-their-crypto-incomes/

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