Miners and Cryptocurrency Owners in Russia Will Comply to the Existing Tax Code

Published on 19 Jul. 2018
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The norms of the existing Tax Code will be applied to the miners and cryptocurrency owners in Russia. Anatolii Aksakov, the head of the Financial Market Committee of the Russian Duma, reported the news in the interview.

An individual who is involved in the digital money circulation will pay the income tax, and the entities will pay taxes according to the form of business. Due to the official’s words, the law project on digital financial assets should be adopted in autumn.

The projects “On Digital Financial Assets” and “On Crowdfunding” should have been adopted in June; however, these projects are still causing a lot of questions, so their adoption in the second reading has been postponed until autumn. At the moment, the workgroup in the lower house of parliament is preparing amendments to the law projects.

Aksakov specified that the document would not describe separate tax regimes for the digital money owners, i.e., the existing rules of the tax code will be true for the mining and cryptocurrency circulation.

If an individual is engaged in cryptocurrency, he/she will pay 13% of income tax; if we talk about the entity, then the taxation will depend on the form of business. For instance, such an entrepreneur could work according to the simplified tax system, or pay income tax.

However, the head of Financial Market Committee assumes the possibility of separate taxation regimes for mining and cryptocurrency circulation. They can appear in the future if the government initiates such division.

If they want to describe the tax norms for these types of business separately, they’ll inform us. Right now we don’t describe tax questions,

- he added.

The crypto community considers that mining and cryptocurrency circulation require separate tax regimes, stated Anatolii Kozlachkov, the deputy chief of the Russia Bank Association. He said that the Ministry of Finance could introduce provisions concerning taxation after the adoption of the law in the second reading when the majority of conceptual questions will be solved and the main contradictions removed.

The position of the Russian regulator, the Central Bank, on cryptocurrencies stays conservative. However, the deputy chief of the CB assumes that it could change with time when the technology proves its usefulness.

In May, the amendments concerning crypto investors were added to the existing law project. According to these amendments, the register of cryptocurrency investors will be created. This means that one will have to pass certification to have a possibility to buy cryptocurrency. At the moment, the cryptocurrency exchange for the sum of 600 thousand rubles and more falls under the obligatory currency control. The information is stated in the government response to the deputies’ law project. The Russian banks are already tracking such operations with the aim to counteract money laundering and financing terrorism.

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