Despite the fact that tokens have no legal existence in Russia, the Russian tax authority claims that citizens “can pay” taxes on their crypto revenues.
The Federal Tax Service (FTS) claimed that crypto earners could pay taxes using two alternative methods, indicating that the government appeared to be delivering contradictory messages about its stance on crypto.
According to V2B, the FTS stated that persons who profit from cryptocurrency can disclose their revenues on crypto personal income tax declarations or use the simplified taxation system (STS).
In Russia, cryptocurrency has no legal standing. Furthermore, the Central Bank wants a total prohibition on all crypto-related activity in the manner of China.
Government departments such as finance, trade, and energy have all voiced a desire to “legalize” and control cryptocurrency.This has resulted in a years-long stalemate between the bodies.
The sanctions regime placed on Russia by the US and its allies has clouded the picture even further.Some Russian enterprises are purchasing and selling goods for cryptocurrency in an effort to de-dollarize and facilitate trade.
In apparent desperation, the finance ministry reportedly presented a compromise last week that would virtually prevent everyone in Russia from dealing with cryptocurrency except miners.It indicated that cryptocurrency can be recognized as a type of property and declared on tax returns as such.
Russian courts have previously determined that cryptocurrency can be protected as “intangible property,” and hence fall under current property rights.
The organization acknowledged that “the status of cryptocurrencies is not fixed by law,” but said that “until this issue is resolved,” the “sale of cryptocurrencies” could be “considered as the sale of property.”
According to the FTS, “income from the sale of cryptocurrency” can be estimated using “the documented costs of its purchase.”It insisted on conducting tax calculations in fiat rubles.
The organization recommended cryptocurrency merchants to “submit a declaration” by April 30, 2024, using current papers.
Alternatively, crypto dealers can apparently compute their revenues using the STS by computing the difference between their sales income and the amount they spent when “purchasing cryptocurrency.”