Miners and holders of Bitcoin and other cryptocurrencies in Russia will be regulated under existing provisions of the existing Tax Code with no separate taxation schemes included.
According to Anatoly Aksakov, the Chairman of the Russian State Duma Committee on Financial Markets, the lawmakers are looking to pass the bill on digital financial assets, or cryptocurrencies, during the autumn session of the Parliament.
As ForkLog reported earlier, a draft bill aimed at protecting the rights of cryptocurrency owners while also regulating them in line with Russian laws was introduced to parliament in March with the biggest expectation being the legalization of cryptocurrency payments. However, as local media outlets report, the expectation of making digital currencies legal may not come to pass.
Aksakov specified that individuals engaged in the circulation of virtual currencies will pay personal income tax, while legal entities will have to pay taxes in accordance with their type of business.
The document will not include separate taxation schemes for cryptocurrency owners, meaning that mining and circulation of cryptocurrencies will be regulated under the Internal Revenue Code. However, a separate taxation schemes for mining and circulation of cryptocurrencies may be adopted in the future if the government finds it necessary.
“If they want to determine [tax rates] for these types of businesses separately, they will. We are not addressing tax issues in any way so far,” Aksakov told local news outlet Izvestiya.
Earlier this year Russian government has prepared a memo on the law “On digital financial assets” that states the “exchange of cryptocurrencies for fiat money to the amount of 600,000 rubles (around $10,000) and more has to be subject to mandatory currency control.”
Follow ForkLog on Twitter and Facebook!