The Russian State of Duma approved a draft bill crypto taxation yesterday that will already be up for consideration tomorrow. This draft bill comes with suggestions regarding specific amendments to the Russian federal tax code to levy a tax against crypto transactions after a month ago it was made illegal to use it as a currency.
The explanatory note mentions that “for the purposes of the Tax Code of the Russian Federation, it is proposed to recognize digital currency as property.”
In other words, the draft bill will consider cryptocurrencies as being property, and anybody who owns over 600 thousand rubles in a calendar year would have to report to the authorities. Around a month ago, Duma passed legislation that stops citizens from using crypto as a form of exchange.
The Bill Will Propose Taxation and Penalties
The regulatory bodies of Russia have been working on proposing taxes on crypto for close to two years now by making them a form of property or a treasure find. This new draft bill is similar to previously proposed penalties that were considered for anybody who doesn’t declare they own crypto.
“The official document also talks suggests tax liability for unlawful and untimely failure to submit or submission of a report on transactions (civil transactions) with digital currency and on the balances of the specified digital currency containing inaccurate information.”
Activities such as misinformation or filing the papers too late would attract a fine of up to 10% from the incoming or outgoing transactions.