The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RAKIB) proposed a scheme for taxing cryptocurrencies and miners to the concept of the Ministry of Finance’s regulation of the industry. The document is in ForkLog’s possession.
RAKIB proposed taxing individuals only when crypto assets are withdrawn. Specifically, it proposes paying income tax by deducting the amount spent to buy the asset, including all fees charged by the platform, from the proceeds. The resulting amount would be multiplied by the personal income tax rate.
In the association’s view, a similar scheme should be used to tax corporations, individual entrepreneurs and the self-employed — subtracting the amount spent on purchasing cryptocurrencies from the income received, and multiplying the difference by the corporate income tax rate.
Account statements from foreign exchanges or exchange operators operating in Russia may serve as evidence of income and expenses from digital-asset operations.
RAKIB also believes there is no need to apply property tax to cryptocurrency if it is not converted into rubles or other currencies.
For mining companies, the association proposes deducting costs such as electricity or equipment maintenance from the amount received from selling mined crypto assets. The difference would be taxed at a 20% corporate income tax rate.
RAKIB believes that miners could fall under the simplified tax system and be exempt from VAT.
They also propose not to apply sanctions to mining companies for violations in customs clearance of equipment, filing income declarations, signing power-supply contracts and paying VAT.
RAKIB believes that mining should be treated as entrepreneurial activity and assigned a special OKVED code.
The Ministry of Finance said it would consider the association’s proposals in due course.
Another option for taxing miners was raised in the State Duma. They said that the personal income tax on miners’ withdrawal of cryptocurrency into the traditional financial system should be no less than 15%. Market participants’ opinions on the proposed tax rates divided.
Earlier in January, the Central Bank of Russia proposed to ban mining on the territory of the Russian Federation.
Even before the central bank’s report, authorities supported regulating mining as entrepreneurial activity. The Ministry of Finance also stated that the market should be regulated, not banned.
President Vladimir Putin urged the government and the central bank to reach a consensus on cryptocurrencies, and said that Russia has competitive advantages in mining — a surplus of electricity and well-trained personnel.
In the Chamber of Commerce and Industry, they advocated for treating cryptocurrency mining as entrepreneurial activity.
The Association of Guaranteed Suppliers and energy suppliers proposed to disconnect “grey miners”, and to require providers to furnish networks with information about miners’ IP addresses and to set out liability for breaches of the rules for using utilities.
Such proposals were sent to the government by the State Duma.
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