Cryptocurrencies and digital assets issuers in Russia may no longer have to worry about Value Added Tax (VATs) payments moving forward, all thanks to the proposed draft law that has seen approval from the State Duma.
The Russian parliament has rolled out approval on a draft law proposing a Value Added Tax relief on issuers of digital assets and cryptocurrencies in the country, a Tuesday report from Reuters unveiled.
Russia Adjusts Tax Rules on Digital Assets
Cryptocurrencies and digital assets issuers in Russia may no longer have to worry about Value Added Tax (VATs) payments moving forward, all thanks to the proposed VATs exemptions law that have seen approval from the State Duma.
According to the report, the lawmakers had approved the draft law after the second and third readings on Tuesday. The tax relief was also extended to the information systems operators who would be involved in issuing them.
Furthermore, the Russian authorities have not only cancelled VATs payments for crypto users, the authorities have also rolled out new tax laws, adjusting the tax rates on income earnings that are related to the sale of digital assets. Currently, the tax rate on transactions is 20%, which also applies for standard assets. However, the new law would see tax rates declining to 13% for Russian companies and 15% for foreign ones.
The report further revealed that the draft law is yet to be fully implemented and become law as it is yet to be reviewed by the upper house and signed by President Vladimir Putin.
Crypto Adoption in Russia
Despite the mass adoption of cryptocurrencies all around the globe, Russia had earlier garnered a frosty impression on the regulation of digital assets and cryptocurrencies in the country. The nation’s central bank had proposed a ban on the use of digital assets in the country, claiming it is a threat to the country’s financial stability.
Nonetheless, the wavy stance on digital assets in the country began to gain a positive stability as the legal authorities in the country had begun to consider a legal backing for the use of digital assets especially cryptocurrencies in early 2022.
According to a report, the country’s stance on cryptocurrencies began to change after the Ministry of Finance disclosed that it has given a clear thought towards creating a legal market for digital currencies with the establishment of rules for their circulation and their participants.
Caroline is a zealous writer who recently picked interest in Bitcoin and the cryptocurrency community. She’s always learning about the industry and aims to provide timely and accurate information about the latest developments in the crypto space
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