The Russian Parliament has introduced the bill, which proposes to recognize cryptocurrency as property. The proposed law will provide legal protection for cryptocurrency, but its activity income is also taxable.

Cryptocurrency will be regarded as Russian property

RIA Novosti reported last week that the State Duma, the lower house of the Russian Parliament, passed a bill that recognizes cryptocurrencies as property and tax their income in first reading. The publication noted that the document was submitted by the government to Parliament on December 1, 2020, detailing:

The bill proposes to recognize digital currency as property subject to tax laws. As Prime Minister Mikhail Mishustin explained earlier, this will allow cryptocurrency owners to rely on legal protections and defend their rights in court.

Prime Minister Mishustin outlined the Russian government’s plan to treat cryptocurrencies as property as early as November, when he outlined various measures, including cryptocurrency regulation, to combat the spread of the coronavirus pandemic.

The bill imposes a tax on income from cryptocurrency activities. If the value of cryptocurrency transactions during the year exceeds 600,000 rubles (8,100 U.S. dollars), Russian citizens and organizations will have to submit a declaration. At the same time, the publication stated that cryptocurrency will not depreciate, and transactions related to its circulation will not be subject to value-added tax.

For unpaid or unpaid taxes, a fine of 40% of the amount owed will be imposed. If you fail to submit, the submission is not timely or the information submitted is incorrect, you will also be fined.

For violation of the declaration, a fine of 50,000 rubles will be imposed. The Federal Revenue Service will have the right to request individual bank statements for cryptocurrency transactions.

See also  Guggenheim Investment Fund will invest 497 million U.S. dollars in Grayscale GBTC seeking bitcoin risk exposure

The State Duma Budget and Taxation Committee intends to clarify which crypto transactions are exempt from VAT during the second reading of the final draft. In addition, it will specify the reporting requirements for handling digital currencies and submitting transaction reports.

How do you think Russia treats cryptocurrencies as property? Let us know in the comments section below.

Picture Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article or related thereto.