Lawmakers in Russia are at the point of finalising the legislation which would help the regulators to regulate the crypto related matters of the Russian Federation. Recently, two bills have been filed in the Russian state called Duma. The bills were filed in the last couple of weeks and both the laws are drafted as ‘On digital financial assets’. One of the drafted law legalizes blockchain technologies, mining operations and initial coin offerings. The other bill aims to amend the civil code of the country in order to introduce the terms like ‘digital money, cryptocurrency’ etc. in the country and protect the rights of the crypto investors. The bills are expected to be adopted in the country in the early summer.
Apart from this, the lawmakers are working to amend the tax code of the country. The Russian citizens are expected to pay a tax of 13 percent on their crypto related incomes. The amendments which are to be done in these tax codes are under preparation and the exact rates would be finalised by the end of the year. The other two bills will be adopted soon and the bill related to the tax code would be adopted later. However, private individuals in the meantime are busy with the obligation of informing the tax authorities about their income through cryptocurrency operations.
According to a letter issued by Financial Ministry of the country, the standard tax rate of 13 percent is applicable to the profit earned from the trading of cryptocurrencies like bitcoin. Though the letter is just expected to be a recommendation but the tax lawyers find it a stance of the ministry and thinks that it would be used as a reference before the new rules would be adopted. However, the income tax rate the other parameters related to the crypto operations will be officially confirmed with the tax amendments of the tax code. Until the time the tax code gets finalised the Russian citizens are required to report their crypto income in their tax returns and are expected to pay their tax on the regular basis which has a flat rate of 13 percent.