The number of disclosures of cryptocurrency holding companies in Russia has increased in recent months, according to a new report.
Russian news agency Izvestia reports Thursday that Russians have increasingly been disclosing their income from trading cryptocurrencies for tax purposes. The report cites data from law firms and consultants such as KPMG, PricewaterhouseCoopers, FTL Advisers, as well as the Moscow-based center for public policy studies, the Center for Strategic Research.
Digital ruble is ‘most advanced form of money’, says Russian Bitcoin critic
“We have observed that Russian residents have started to voluntarily disclose income from operations with digital assets, mainly cryptocurrencies, in tax returns,” said Maria Kukla, partner at FTL Advisers.
She noted that it is still too early to determine if the trend will go mainstream. The foreign exchange tax reporting period ends on May 1, and according to Kukla, a lot could change before then.
Evgeny Sivoushkov, head of PwC Russia’s individual tax division, said that interest in disclosing cryptocurrency holdings has increased during the current tax filing period. According to Sivoushkov, the new trend was driven by the adoption of Russia’s cryptocurrency law “On Digital Financial Assets”, as well as the increased focus of tax authorities and compliance services on the origin of foreign income and assets. of the Russians.
Bitcoin bulls turn back after BTC bounced off key support level
FTL Advisers has not responded to Cointelegraph’s request for comment. PwC Russia declined to comment.
The reported increase in the number of cryptocurrency tax filings comes despite Russia not having officially enforced any dedicated legislation related to cryptocurrency taxes. However, according to Izvestia sources, Russia’s Federal Tax Service says that the procedure of taxation of cryptocurrency income by individuals is formally described as part of a letter from the Ministry of Finance issued in May 2018. .
According to the letter, the tax base of cryptocurrency trading is defined in Russian rubles as the “excess of the total amount of income received by taxpayers from the sale of cryptocurrencies over the total amount of documented expenses for its acquisition.”
Waves Enterprise Expands to Singapore to Promote Adoption of Its Hybrid Blockchain
Russia is moving forward with proposed new legislation that would require Russian residents to pay income taxes for trading cryptocurrencies. The bill, which was approved by the State Duma in the first reading in February, required residents to report crypto transactions if their total amount exceeds 600,000 rubles ($ 7,800) annually.