The Russian Duma gave the green light to cryptocurrency in the first reading

moscow, russia

The lower house of the Russian parliament approved in the first read a bill that views cryptocurrencies as property. And as such, cryptocurrencies can be subject to taxation.

If a bill from the workshop of Russian Finance Minister Mikhail Mishustin passes the legislative process, cryptocurrencies will be subject to taxation in Russia. The form of the norm, which passed the first reading in the Russian Duma, envisages that everyone who buys a cryptocurrency will have to keep records of transactions.

As soon as the value of the purchase of digital currencies exceeds 600 thousand rubles per year (less than $ 8,200), the authorities will be required to report on the transactions made. Failure to comply with this obligation will result in a fine of ten percent of the unreported amount. If someone does not pay the assessed tax or pays it in incomplete amount, the sanction will reach up to 40 percent of the total tax amount. And of course the tax will have to be paid extra.

The Russian media did not say how much cryptocurrency transactions will be subject to high taxation. However, it can be assumed that the rate according to which other assets are taxed will be applied to cryptocurrencies. Both domestic and foreign entities will have the obligation to pay the tax, but they have at least a branch in Russia.

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