Lower House of Russian Parliament Passed Digital Assets Tax Legislation

• Regarding DFAs, platforms are exempt from VAT, exactly like securities.
• Foreign-based corporations will be charged a higher 15 percent tax.

In Russia’s State Duma, the lower house of the Russian parliament passed a measure allowing Moscow to tax digital financial assets (DFAs) activities by altering the country’s tax code. The bill passed on second, third, and final readings. Various components of cryptocurrency taxes have been clarified in the legislation since DFA is Russia’s primary tax term for them. There will be more definitions for digital currency in the autumn, thanks to new legislation.

13% Tax Established For Domestic Organizations

Regarding DFAs, platforms are exempt from VAT, exactly like securities, according to an internal document obtained by Forklog, an online source for cryptocurrency-related news. According to the report, the tax basis for exercising digital rights, which includes security and utility tokens, will be defined by the difference between the selling price and the purchase price of the corresponding digital right.

The new tax regulations mandate that Russian legal organizations that possess digital tokens pay a 13 percent tax on the amount of revenue they earn from them. In comparison, foreign-based corporations will be charged a higher 15 percent tax, offering a slight advantage to local enterprises in Russia.

After being introduced to the State Duma in mid-April, a proposal for the crypto tax legislation was approved in the first reading later that month. In addition, the parliamentary financial market and new legislation committees supported it. Legal experts at the time said private crypto assets were exempt from taxation.

Russian authorities have been striving to regulate the country’s crypto sector this year extensively. Due to persistent debates on how cryptocurrencies like bitcoin should be regulated, the Ministry of Finance suggested digital currency legislation in February.

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