The Russian government has put forward a proposal to amend its tax code to include legislation over the use of cryptocurrencies.
The Russian State Duma, which is the lower house of the Federal Assembly of Russia, announced the receipt of a draft law on February 12 that will propose some amendments to the country’s tax code that address the tax implications of cryptocurrency use.
The State Duma website notes the proposal to amend the first and second parts of the tax code in the country, in order to address a number of concerns around the ‘large-scale spread of blockchain technology and the expansion of the number of economic entities using cryptocurrency’. The Russian government insists that cryptocurrencies ‘requires legislative certainty in terms of its taxation’.
The announcement also notes the government’s belief that cryptocurrency is used for tax evasion, money laundering and financing illegal activities. Another concern raised is that the Russian tax authorities have no information on legal entities and citizens.
The proposal also introduces an ‘obligation’ to submit a declaration if the amount of receipts or write-offs of digital currency for a calendar year exceeds an amount equivalent to 600 thousand rubles.
The new law also introduces tax liabilities for untimely failure to submit cryptocurrency transaction reports as well as falsified information.