Russia is one step closer to implementing a new tax regime for cryptocurrency transactions and mining. The Federation Council, Russia’s upper house of parliament, has approved a bill that will exempt crypto transactions from value-added tax (VAT) and impose a 15% personal income tax on income from trading.
The bill, which was previously approved by the State Duma, Russia’s lower house of parliament, now awaits President Vladimir Putin’s signature to become law. Once enacted, the new tax regime will establish digital currency as property and require crypto mining infrastructure operators to report client information to tax authorities.
The Russian government’s move to regulate the cryptocurrency market is part of a broader effort to strengthen its position in the global digital economy. By imposing a clear and transparent tax framework, Russia aims to attract investment in the crypto industry while ensuring that the government can collect revenue from related activities.
While the new tax regime is a significant step forward for Russia’s crypto industry, it also raises concerns about privacy and regulatory oversight. Some experts argue that the requirement for mining operators to report client information could stifle innovation and discourage individuals from participating in the market.
Despite these concerns, the Russian government’s decision to exempt crypto transactions from VAT and impose a relatively low tax rate on trading income is seen as a positive development for the industry. It remains to be seen how the new tax regime will impact the growth and development of Russia’s crypto market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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