Since the beginning of the year 2020, the Russian Government has been making a lot of progress in the cryptocurrencies sector. The most effective step that the Russian Government takes in the cryptocurrency sector was to induct cryptocurrencies and digital assets in its rulings.
This granted cryptocurrencies a legal and unique status in the country that the locals of the country could use for their benefits. While the government has been giving a free hand to the cryptocurrency firms in the country, yet the Russian government is also tightening its grip around cryptocurrencies.
The government of Russia is reportedly doing this by making sure that it keeps the entire industry regulated in the country. The country has also ensured that it keeps making necessary changes to the regulatory infrastructure of cryptocurrencies as the industry gains progress and improvements.
At present, it is being reported that the lawmakers from Russia are working day and night in order to introduce new legislation. It has been revealed that new legislation would be surrounding the taxation process of cryptocurrencies such as Ethereum, Litecoin, and Bitcoin (BTC).
As per reports, the Russian State Duma has made an official announcement. It has revealed that its State Building and Legislation committee has just given a go for the latest cryptocurrency bill. The bill approved by the committee will address the taxation process surrounding cryptocurrencies.
The Russian State Duma has confirmed that the new taxation bill for cryptocurrencies has been approved by the committee.
As per the law that was filed back in July 2020, the cryptocurrencies such as Bitcoin (BTC) are considered to be properties. Giving this status to the cryptocurrencies would mean that the Russian civilians will be entitled to pay taxes for holding cryptocurrencies.
Furthermore, it has been clarified in the new tax bill that the legislation would apply to both Russian citizens as well as foreigners living in Russia. In the light of the approval of the new bill, all users of the cryptocurrencies in Russia making profits would be entitled to pay taxes.
Apart from the cryptocurrency taxation process, the new bill has also introduced a couple of amendments to the taxation process involving different sectors.
According to the new bill passed by the Russian State Duma, the users of the cryptocurrencies in Russia will be required to report their earnings from cryptocurrencies if they meet certain criteria. If the total amount of outgoing and incoming transactions for cryptocurrencies is more than 600,000 Rubles, then the users will have to report them to the Russian Government. At the time of publishing, the 600,000 Rubles figure translates to $8,100.
The ruling suggests that if the users fail to comply or evade the taxation process, they will end up paying fines and penalties that would be up to 10% of users’ incoming/outgoing transactions.