Russian Parliament Approves Crypto Tax Regulations
According to reports, the Russian parliament has approved the amendment of the country’s Tax Code. According to the amendment, local entities stand to benefit more than their foreign counterparts.
Meanwhile, the latest tax regulation exempts issuers of digital assets from paying tax. Now, the country can look at regulating other areas of the crypto industry.
Russian Duma Adopts Law For Crypto Tax
According to reports, the State Duma has approved a bill to amend Russia’s Tax Code. This amendment would allow the country to tax transactions with DFAs (digital financial assets).
Besides, the bill went through the second to final reading before it was approved. Russia joins a host of other countries receiving revenue from crypto taxation.
Presently, the term DFA connotes all digital currencies in Russia. However, by this fall, a new law would expand the definitions of digital assets.
Furthermore, the new law explains different aspects of the crypto tax. Forklog, a cryptocurrency news outlet, noted that certain platforms would not be part of the crypto tax.
They include platforms that control, issue, and record DFA transactions. This means that issuers of digital assets will not pay crypto tax.
Before now, the tax rate on crypto transactions was 20%. However, the law made some adjustments and introduced different rates for local and foreign firms.
Latest Regulation Favors Russian-based Firms
Legal entities in Russia with crypto will pay 13% tax on their income. Meanwhile, foreign-based firms will have to pay a higher tax rate of 15%.
This shows the law gives more preference to local firms. It will give them an opportunity to develop faster than their foreign counterparts.
Initially, the lower house of parliament submitted a cryptocurrency tax law in April to the Russian Duma. In May, the law went through the first reading in the lower house of parliament.
Meanwhile, the parliamentary financial market approved the law. During that time, some issues delayed the adoption of the bill. Experts noted that the tax regulations do not include private cryptocurrency holdings.
In 2022, Russian authorities have been making efforts to regulate the crypto industry. In February, the Finance Ministry proposed the need to adopt a crypto law.
However, there has been a delay in adopting a regulatory framework. This is due to the discussion on the status of cryptocurrencies such as BTC.
Meanwhile, the recent crypto market crisis may force the country to quicken its crypto regulation. It is uncertain if Russia would tighten its regulation on the crypto industry.
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