Tax consultants have recorded a surge in the payment of personal income tax by Russians from operations with cryptocurrencies, Izvestia reports, citing leading consulting and legal companies: KPMG, PwC, FTL, Advisers, Borenius. The data was confirmed by the Center for Strategic Development (CSR).
The surge is associated with the entry into force of the law on digital assets and the increased attention of tax authorities to foreign assets of Russians. The law, in particular, states that the holders of a cryptocurrency are subject to judicial protection only if they have declared it.
Any non-cash transactions when buying or selling cryptocurrency are recorded in the history of the organization that conducts them (bank, brokerage company, etc.). The IRS has access to this information even if transactions are carried out abroad.
The FTS noted that the procedure for taxing individuals’ income from operations with cryptocurrencies has already been clarified. The letter from the Ministry of Finance dated May 17, 2018 says:
“The tax base for transactions in the sale and purchase of cryptocurrencies is determined in rubles as the excess of the total amount of income received by the taxpayer in the tax period from the sale of the corresponding cryptocurrency over the total amount of documented expenses for its acquisition.”
Now the State Duma is considering a bill to amend the Tax Code, which assumes that citizens will be required to report on the ownership of cryptocurrencies if the amount of transactions on them per year exceeds 600 thousand rubles.
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