The Russian parliament has approved a draft law recommending a tax relief on issuers of digital properties and cryptocurrencies in the country. Authorized on the second, third, and last reading in the State Duma, the lower house of the Russian parliament, the legislation illustrates various aspects of the taxation of cryptocurrencies, as DFA is presently the leading term in Russian law that refers to them. A new law, “On Digital Currency” should broaden the legal framework and justifications for crypto assets.
According to a report by Reuters,” the tax relief will also extend to information systems operators who would be involved in issuing them.” Russian councils have not only canceled VATs payments for crypto users but also have created new tax laws, regulating the tax rates on income earnings that are connected to the sale of digital properties.
Presently, the tax rate is 20 percent, which also applies to regular assets. Nonetheless, the new law would see tax rates decreasing to 13 percent for Russian companies and 15 percent for foreign ones.
However, the report does disclose that the draft law is yet to be implemented entirely and become law as it is yet to be evaluated by the upper house and approved by President Vladimir Putin.
The crypto tax law was mainly submitted to the State Duma in mid-April and ratified on first reading the next month. It was also accepted by the parliamentary financial market and new legislation councils.
Russian officials are trying to comprehensively oversee the country’s crypto space. The adoption of the digital currency law, formulated by the Ministry of Finance in February, has been postponed by ongoing discussions on the forthcoming legal status of decentralized cryptocurrencies such as Bitcoin.
