Topic: Russian Government Passes Draft Bill on Bitcoin Taxation (Read 255 times)
If you watch the news from Russia or the first news resources both on television and on radio and the Internet, you will be surprised! There is practically nothing to do with this topic. The news as it appeared and passed, under the avalanche of more important news. I think all this will be relevant only when the foreign policy situation for the Russian Federation becomes better - and there is very little hope for this. So if you live in Russia - do not worry and calmly engage in investments, cryptocurrency mining and so on. The government is now not up to this, they have other priority tasks.
You are joking?
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
Compared to what we have in India, I would prefer the option given by the Russian lawmakers at any point of time. Obviously their legislation is not perfect as what they have in Japan or South Korea. But at least the trade and ownership of cryptocurrency is not a criminal offense (here in India we are facing a real possibility of the authorities making ownership of Bitcoin a criminal offense). Be happy with what you got. Because people like me are in much worse position right now.
A lot of things are prohibited in Russia, but if you need it, then you can make an inquiry on the Internet and buy it.
Therefore, no matter what the legislation on cryptocurrencies in Russia will be, the shadow market will work.
The lack of adequate legislation or a complete ban will lead to a technological lag behind other countries.
This is something to worry about.
You are joking?
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
Compared to what we have in India, I would prefer the option given by the Russian lawmakers at any point of time. Obviously their legislation is not perfect as what they have in Japan or South Korea. But at least the trade and ownership of cryptocurrency is not a criminal offense (here in India we are facing a real possibility of the authorities making ownership of Bitcoin a criminal offense). Be happy with what you got. Because people like me are in much worse position right now.
Property tax in Russia is not as high as in some European countries. So if legalization goes along the path of a massive exit from the shadow of cryptocurrency owners, it is good, no matter what the law is. Another thing is that this law is no longer included in the list of "important" or "red" laws that go through all stages in parliament quickly and without problems. The discussion continues ...
They got the ball rolling at some point, when the bill is confirmed by the Duma, it will create a precedent for other countries too. The part which leaves the holders alone looks fine but there must be at an invisible trick behind it. Now, comments and amendments must be made by March 18th. I am very curious and will keep this monitored. Thanks zasad@ and all the others who contributed here.
So they will recognise crypto as property. In short, you will have to report all transactions (buying and selling) if they exceed $8000 per year. If you are late in reporting you pay extra 10 % fee and if you fail to report your fined with 40 %. Long term holdings are not taxed.
At the same time, according to the law on digital assets that has already been adopted and entered into force, it is prohibited in Russia to make any transactions in cryptocurrency. You can store it, but it is forbidden to perform any actions with it. However, if the amount of such prohibited transactions, according to the new bill, exceeds 600,000 rubles, that is, now about 8,130 dollars, then you will have to pay tax. Very original regulation of cryptocurrency.
The cryptocurrency market in Russia, whatever the outcome of this story, will be mostly in the shadows. This is Russia, where the severity of laws is compensated by the non-binding nature of their implementation. So the Russians themselves joke. This means that this will also apply to cryptocurrencies. It is unlikely that the Russians, instead of liberalizing this market, will follow the path of prohibitions and restrictions. It's not like them at all! ; D; D
You are joking?
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
You can have cryptocurrency in Russia
Next is the funniest thing: you cannot sell this cryptocurrency (these operations are allowed only through accredited organizations that do not exist yet)
You cannot pay for goods and services with cryptocurrency
You cannot advertise cryptocurrencies and cryptocurrency projects.
That is, access to work with cryptocurrencies is planned through accredited intermediaries
WTF
Under such conditions, the cryptocurrency market will remain in the shadow zone.
Well, I'd consider this pretty good news for Russian crypto enthusiasts.
It is completely unrealistic to expect authorities to treat bitcoin as some sort of tax haven. A mature tax code where holding BTC is non-taxable and a reasonable CGT is charged should be welcomed.
Also implementing a mechanism to avoid double taxation on BTC as both a good and an asset (VAT + CGT) is essential as well - though I'm not too sure about whether or not this is already an element included in the proposed bill.
It is completely unrealistic to expect authorities to treat bitcoin as some sort of tax haven. A mature tax code where holding BTC is non-taxable and a reasonable CGT is charged should be welcomed.
Also implementing a mechanism to avoid double taxation on BTC as both a good and an asset (VAT + CGT) is essential as well - though I'm not too sure about whether or not this is already an element included in the proposed bill.
I think this step will be very important to make cryptocurrencies legal in Russia, Russia is one of the few countries trying to make cryptocurrencies legal in the country, there are a large number of Russians working in cryptocurrencies so I think this is a smart move from the Russian government to collect taxes by making Cryptocurrencies are legal and this will definitely be in the interest of the country's economy.
This is definitely a step in the right direction! Russia is a modern advanced country and its government understands the value of integrating and adapting cryptocurrency within its economy, as well as everything connected with it. Further, we will probably face a process of reprisals against those who "did not have time" or did not want to legalize their income from the sale or purchase of cryptocurrency.
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The Law "On Digital Financial Assets" contains a lot of contradictions. It is possible to own cryptocurrency, but selling cryptocurrency or exchanging it for other goods is a crime. This is a paradox. There are no services in Russia where you can legally buy cryptocurrency and receive purchase documents.And on sale, the user can be forced to pay tax without using a deduction of purchase costs, because there are no mechanisms for recording these transactions.
(current law has more controversy and contention)
If cryptocurrencies are allowed, there will be many scammers who will deceive many people and disappear with their money.
Therefore, this area is very difficult to regulate in a country where laws are formal in nature.
There is a lobby that does not want to be paid for goods in Russia with cryptocurrencies, but regardless of someone's desires, the shadow market is growing very much.
Noticing alot of countries are enforcing laws in their own jurisdictions on having a separate taxation on anyone doing anything involving cryptocurrencies.
As if they are doing this so to deter people in using the currencies such as bitcoin and the like altcoins.
Because will absolutely start to get scared when they hear the word taxes on your cryptocurrency that will begin the process of swirling questions on if they should be holding any bitcoin or even if they should buy and sell their altcoins on exchanges such as binance. Because they generally need to submit their id during KYC so they can trace you in that way if the tax agency comes calling them on doing an audit of your earnings and if your actually paid all your taxes on what you have made.
Think of what is going on with Trump now with the court cases on tracking down on all the taxes he had not paid for the millions he had made during his hay days of Trump towers across the globe.
As if they are doing this so to deter people in using the currencies such as bitcoin and the like altcoins.
Because will absolutely start to get scared when they hear the word taxes on your cryptocurrency that will begin the process of swirling questions on if they should be holding any bitcoin or even if they should buy and sell their altcoins on exchanges such as binance. Because they generally need to submit their id during KYC so they can trace you in that way if the tax agency comes calling them on doing an audit of your earnings and if your actually paid all your taxes on what you have made.
Think of what is going on with Trump now with the court cases on tracking down on all the taxes he had not paid for the millions he had made during his hay days of Trump towers across the globe.
If the agenda requires it, then they will accept it. And then they will make amendments and other corrections to the current document for a long time. This is an attempt to keep up with the trend. I am sure if the price of bitcoin continues to fall, then very quickly the topic related to this will leave the pages of news feeds. It is a pity that Russia was unable to become leaders in this direction.
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The Law "On Digital Financial Assets" contains a lot of contradictions. It is possible to own cryptocurrency, but selling cryptocurrency or exchanging it for other goods is a crime. This is a paradox. There are no services in Russia where you can legally buy cryptocurrency and receive purchase documents.And on sale, the user can be forced to pay tax without using a deduction of purchase costs, because there are no mechanisms for recording these transactions.
What happens when this bill is passed? Is there a summary of the things that will happen so a pleb like me can understand it without a hitch, I hope that you will post it here. It is a good thing that they plan to tax bitcoin instead of banning it entirely. The only deciding factor if this is a good tax law is if the individual tax is manageable and not headache worthy.
The Law "On Digital Financial Assets" contains a lot of contradictions. It is possible to own cryptocurrency, but selling cryptocurrency or exchanging it for other goods is a crime. This is a paradox. There are no services in Russia where you can legally buy cryptocurrency and receive purchase documents.And on sale, the user can be forced to pay tax without using a deduction of purchase costs, because there are no mechanisms for recording these transactions.
What happens when this bill is passed? Is there a summary of the things that will happen so a pleb like me can understand it without a hitch, I hope that you will post it here. It is a good thing that they plan to tax bitcoin instead of banning it entirely. The only deciding factor if this is a good tax law is if the individual tax is manageable and not headache worthy.
I feel jealous about the Russians. Here in India, the government has almost finalized their plans for a law, which would make ownership of cryptocurrency a criminal offense which is punishable by 10 years in jail. And then we have countries such as Russia, where there are zero taxes (on long term holdings). But proving that you purchased the coins more than 12 months ago can be challenging. My Bitcoin wallet is having hundreds of transactions. If I want to file for long term capital gains exception, then I need to explain each and everyone of these transactions (which is pretty much impossible).
Just stay out of the noise for a little while since this is just still a bill and chances are the lawmakers will add or take away some from the existing bills. Remember that the Reserve Bank of India is the strong opposition here but even your Supreme Court have ruled out their unjustified ban against crypto related transactions in the past so chances are there are also lawmakers who have different views with their bill and they might add some exemptions like finding a way for popular cryptocurrencies like Bitcoin and Ethereum co-existing with the planned digital Rupee or this ban for "private cryptocurrencies" will only be applied to new ICOs. Bills are something we don't react on as something final as there will be days/months/years for it to become a law and most of them don't even have the same content/regulations when they become a law.
Perhaps I can surprise someone, but soon such "intelligence" will (if not already started) track all transactions that go through electronic payments, including cards. And with cards in Russia, everything is in order for a long time! It turns out the following picture: cryptocurrency as property or transactions associated with it will simply be added to another. Cryptocurrency will not be the first such asset, it will be the last one that has already been tracked. Everything is logical, because the new prime minister is the former head of the tax service.
Russia has a huge shadow market for buying and selling cryptocurrencies. Nobody asks for documents there. Any user can exchange cryptocurrencies for cash.If the exchange takes place through bank cards, then nothing is indicated in the basis of the payment.
Many exchangers have started to provide cash-in service.
Money is not transferred to the client's card by transfer from another client of the bank. The courier refills the client's card account in cash through an ATM.
So they will recognise crypto as property. In short, you will have to report all transactions (buying and selling) if they exceed $8000 per year. If you are late in reporting you pay extra 10 % fee and if you fail to report your fined with 40 %. Long term holdings are not taxed.
I feel jealous about the Russians. Here in India, the government has almost finalized their plans for a law, which would make ownership of cryptocurrency a criminal offense which is punishable by 10 years in jail. And then we have countries such as Russia, where there are zero taxes (on long term holdings). But proving that you purchased the coins more than 12 months ago can be challenging. My Bitcoin wallet is having hundreds of transactions. If I want to file for long term capital gains exception, then I need to explain each and everyone of these transactions (which is pretty much impossible).
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