Russia Has Approved a Tax Break on Digital and Crypto Assets

tax break on digital and crypto assets
Share on linkedin
Share on facebook
Share on twitter
Share on reddit

On Tuesday, Russian lawmakers approved a draft law that could exempt issuers of digital assets and cryptocurrencies from value-added tax.

Russia has long been skeptical of cryptocurrencies and other digital assets, with its central bank citing financial stability concerns.

However, in February, the regulator granted Atomyze Russia the first license to exchange digital assets. Soon after, the dominant lender Sberbank received a license.

Unprecedented Western sanctions have struck the heart of Russia’s financial system in response to events in Ukraine, and lawmakers have scrambled to pass new legislation to cushion the blow.

The draft law, which was approved by State Duma members in the second and third readings on Tuesday, provides for VAT exemptions for issuers of digital assets and information system operators involved in their issuance.

It also establishes tax rates for earnings from the sale of digital assets.

The current transaction rate is 20%, the same as for standard assets. The new law would levy a 12% tax on Russian companies and a 15% tax on foreign companies.

To become law, the draft must still be approved by the upper house and signed by President Vladimir Putin.

Share This Article:

Share on linkedin
Share on facebook
Share on twitter
Share on reddit

Related Posts