Topic: Russian Government Passes Draft Bill on Bitcoin Taxation - page 2. (Read 230 times)
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.
That's if the legislative branch is leaning towards passing the bill which means mostly the changes will be on the rates implied for the taxes as well as other minor parts such as the definitions and other rules and regulations. But if they are leaning towards to declining the bill then simply it won't even pass to the final reading at all and the other course of action for them is to create a bill about banning or restricting the crypto industry even further. For me I think the former is better to think about since a taxation regulation for cryptocurrencies is a inevitable thing to happen especially considering that other countries have passed similar laws when it comes to it earlier compared to where Russia is now.
If we look at the dynamics and price of the same bitcoin? What will we see? It turns out that one deal can already exceed this threshold of 8 thousand dollars. If before this law everyone quietly and peacefully cashed their income from the sale and purchase with a commission, now it will simply make people hide. Yes, in Europe the average taxpayer is used to and knows the "price" of his tax. I assure you - things are quite different in Russia!
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.
It's bad if you never had to pay any tax before but from the point of view of a typical European business owner the taxation isn't unbearable in Russia. 8k a year is a pretty high amount for an average Russian who earns about 600 USD a month. We can say that you're taxed on your cryptocurrency trades only if you're trading the equivalent of your yearly wage and you're not being taxed more than you'd be for your other assets. As evil as taxes are, these look pretty fair.
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.
It is too early to draw conclusions. It will be necessary to study the law in the third reading when all major corrections are added.I cannot yet imagine the ways in which the tax authorities will punish tax evaders.
Now in Russia there is not a single Russian cryptocurrency exchange; Russians trade on foreign cryptocurrency exchanges.
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.
For those who don't like to click links, I think that this briefing is important and tells it all.
Taxing the Bitcoin related income is a normal direction, but it can be done in many ways, good and bad.
Still, as said, it can change a lot, so ... let's wait and see what happens next.
The bill recognizes cryptocurrencies like Bitcoin as property.
It also criminalizes non-declaration of crypto trading profits.
Just holding Bitcoin is a non-tax event.
It also criminalizes non-declaration of crypto trading profits.
Just holding Bitcoin is a non-tax event.
It is important to understand who exactly is involved in the development of this legislative act. The problem is that often such "specific" laws are considered in isolation from the expert community or under the pressure of two or three opinions of individual pro-government experts. Too little discussion will eventually lead to the fact that the law will come out "raw" and will require a lot of refinement. And you could just take your time and discuss everything in detail with those who do this every day.
https://decrypt.co/57989/russian-government-passes-draft-bill-on-bitcoin-taxation
Russian Government Passes Draft Bill on Bitcoin Taxation
The draft bill on how cryptocurrencies will be taxed in Russia has been approved in its first reading.
What needs to be done to make this document a law?
The bill goes through three readings in the State Duma(Gosduma).
1. First reading (passed)
2.Second reading
3.Third reading
In short, on the second and third readings, the text of the law can change a lot
4. Consideration by the Federation Council
5 Signing the law by the President
More in Russian
Russian Government Passes Draft Bill on Bitcoin Taxation
The draft bill on how cryptocurrencies will be taxed in Russia has been approved in its first reading.
What needs to be done to make this document a law?
The bill goes through three readings in the State Duma(Gosduma).
1. First reading (passed)
2.Second reading
3.Third reading
In short, on the second and third readings, the text of the law can change a lot
4. Consideration by the Federation Council
5 Signing the law by the President
More in Russian
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