The State Duma of the Russian Federation Adopted A Draft Law On Taxation of Cryptocurrency Transactions

On February 17, the State Duma of the Russian Federation adopted in the first reading a draft law on taxation of cryptocurrency transactions. Now income from cryptocurrency operations will be subject to income tax or personal income tax (PIT).

Citizens and residents of Russia, as well as companies carrying out crypto transactions, must report all transactions to the tax service if the turnover of cryptocurrencies per year exceeds 600,000 rubles.

The adopted draft law provides for a list of legal consequences for those who evade the tax. In case of refusal to pay or incomplete payment of tax, the person faces a fine of 40% of the unpaid amount. For late submission, submission of an inaccurate declaration or refusal to submit a crypto declaration, a fine of 10% of the undeclared digital currency or the amount of the asset write-off is established. If the deadline for declaring is violated, then the fine will be 50,000 rubles. Cryptocurrency ownership will not be taxed.

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