Bill on taxes for digital assets submitted to the State Duma

On 14 April the government внес a bill to the State Duma concerning taxes on transactions with digital assets.

The document explains the VAT treatment for operations involving the sale of digital assets, corporate profits tax, and personal income tax on profits and incomes of taxpayers from selling digital assets.

Under the bill, VAT will apply to the services of information-system operators that issue digital financial assets (DFAs), and to the services of operators exchanging digital financial assets for granting access to digital rights.

The financial result from DFA operations is determined on the date of income payout, separately for each operation and for their aggregate.

The tax base for transactions with securities not traded on an organized securities market may be reduced by the amount of losses from DFAs.

For the realisation of digital rights that include both security- and utility-tokens, the tax base is the difference between the sale price and the acquisition price of the digital right, including the tax amount.

The tax on the income of Russian organisations owning digital rights will be 13%, for foreign companies – 15%.

The issuer of a DFA must, by 1 February 2023, provide to the tax authority a report on DFA transactions carried out during 2022 with individuals who were parties to the deal.

As reported, amendments to the Tax Code concerning the taxation of crypto-asset operations may be adopted in parallel with the bill «On Digital Currency». The latter provides for conducting crypto-asset operations through Russian banks, identifying holders of crypto wallets and separating investors by qualifications.

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