In the world today, where digitalization has gradually taken over, Russia’s parliament has moved ahead of all many countries to accept the use of digital currency (cryptocurrencies) as a property in the country.
The proposed law will provide legal protection for cryptocurrencies but income from their activities will also be subject to taxation.
Cryptocurrencies to Be Considered Property in Russia
On December 1, 2020, a document was submitted to the parliament by the Russia’s State Duma, the l’ower house of Parliament, RIA Novosti reported last week that they have adopted a bill that recognizes cryptocurrencies as property and subjects income from them to taxation in the first reading.
The Prime Minister Mikhail Mishustin has explained, the purpose of the bill is which recognizes digital currency as property is for the application of the tax code, and as well to defend the stability of the digital currency, the various owners of the cryptocurrencies will be subjected to defend rights and legal proctection in court.
A country with vision and right mind to fight the pandemic outbreak of coronavirus, earlier in November, Prime Minister Mishustin mentioned the initiatives, which includes cryptyocurrency regulation and the vision of the Russian government’s to recognize and accept cryptocurrencies as property.
The State Duma Committee on Budget and Taxes are yet to clarify which crypto transactions are exempt from VAT when finalizing the draft for the second reading. In addition, it will specify the declaration requirements for disposing of digital currency and submitting reports on transactions.
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