Russia is preparing a tax system for cryptocurrencies: the abolition of VAT and benefits to miners

in #singapore5 years ago

Russia is preparing a tax system for cryptocurrencies: the abolition of VAT and benefits to miners

Russian lawyers began to develop a tax system for digital assets. It must be prepared before the adoption of the relevant law, since the application of general taxation rules in relation to virtual assets can turn into numerous problems in practice.

The topic of tax consequences for operations with cryptocurrencies was discussed on July 30 at a meeting of the commission on legal support of the digital economy of the Moscow branch of the Russian Bar Association. Based on the results, the commission will formulate proposals for amending the Tax Code. They will be sent to the Ministry of Finance, the Federal Tax Service, the Central Bank, the Ministry of Digital Development and the State Duma.

The basic idea of ​​market participants is to equate all types of tokens with property rights. Among the main proposals are the provision of tax benefits to miners, the abolition of VAT on operations with cryptocurrencies, the creation of a unified system of cross-rates for the monetary measurement of tokens, and a number of others.

The proposal to exempt digital rights transactions from VAT, as well as to exclude the collection of income tax from citizens who sell digital assets after a year of continuous ownership, was unanimously approved by the commission. According to its members, these measures are in line with best international practices (in particular, the experience of Germany and Singapore).

A similar reaction was to the proposal to extend preferences to miners as well. In particular, in relation to IP miners, apply a patent system of taxation, which involves accreditation at the Ministry of Digital Development, as well as disclosing to the tax authorities the details of the crypto wallet of such an entrepreneur.

Mikhail Uspensky, partner at Taxology Law Firm:

“A patent is bought for a fixed fee per year, each region determines the amount of payment itself. The mode is simple and clear, it will allow miners to get out of the shadows, not be afraid of possible confiscation of equipment, which will create a positive climate in the industry. ”

Recall, the other day, the Iranian government decided to consider cryptocurrency mining as a separate legal industry. Under the new law, anyone in Iran will be able to legally engage in cryptocurrency mining, having received a special license for this from the Ministry of Industry, Mines and Trade.

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