Duma approves bill to tax cryptocurrency deals in 1st reading

MOSCOW, Feb 17 (PRIME) -- Russia’s State Duma, the parliament’s lower house, approved on Wednesday a bill introducing taxes on incomes from deals with cryptocurrencies in the first out of three mandatory readings.

The document, submitted by the government, admits that a digital currency is property. Prime Minister Mikhail Mishustin said earlier that it will enable the cryptocurrency owners to count on legal protection in case of any illegal acts and secure property rights at court.

Incomes from transactions with a digital currency will be subject to an income tax. People and companies authorized to deal with cryptocurrencies will have to file a declaration to the tax authority if the amount of such transactions exceeds 600,000 rubles a year. Value-added tax will not apply to such deals.

Non-payment or partial payment of the tax will be fined with 40% of the unpaid amount.

To become law, the bill must be approved in two more readings by the State Duma and in one reading by the Federation Council, the parliament’s upper house, before being signed by the president.

(73.2895 rubles – U.S. $1)

End