Putin Signs Law on Cryptocurrency Tax – The Moscow Times
President Vladimir Putin signed a law Friday that created the legal framework to tax cryptocurrency mining and transactions, as Russia seeks to regulate its cryptocurrency industry.
The new law recognizes digital currency as property in amendments to Russia’s Tax Code.
While exempting cryptocurrency mining and sales from the value-added tax (VAT), the law requires mining operators to report to local authorities or pay a fine of 40,000 rubles ($380).
Cryptocurrency trading will be subject to income taxes, tiered at 13% for earnings of up to 2.4 million rubles ($22,300) and 15% above that.
Corporate entities will be subject to the standard corporate tax rate of 25%, starting next year.
Most of the law’s provisions are expected to enter into force immediately, with certain delayed exceptions.
Russia, one of the world’s leaders in cryptocurrency mining, reportedly expects to collect up to 200 billion rubles (approximately $2 billion) a year from miners.
Russia’s tax service launched a database of government-approved large-scale miners on Nov. 1 under a law that Putin signed in August.
Another law passed around the same time allows Russia’s Central Bank to set up a pilot project exploring cross-border transactions using cryptocurrency.
Russia hopes that digital cryptocurrency transactions, which are harder for Western regulators to track, will make it easier to purchase banned goods on the international market.
The United States has threatened to sanction banks in countries such as China, Turkey and the United Arab Emirates if they help Moscow get ahold of banned military goods, or trade with Russian companies that have been sanctioned.
AFP contributed reporting.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia’s Prosecutor General’s Office has designated The Moscow Times as an “undesirable” organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a “foreign agent.”
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work “discredits the decisions of the Russian leadership.” We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It’s quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you’re defending open, independent journalism in the face of repression. Thank you for standing with us.
Continue
Not ready to support today?
Remind me later.
×
Remind me next month
Thank you! Your reminder is set.
#Putin #Signs #Law #Cryptocurrency #Tax #Moscow #Times
Source link