Russia Clarifies Taxation of Crypto Trading, Mining and ICOs
Cryptocurrency trading, mining, and initial coin offerings (ICOs) are a hot topic in Russia, as the government attempts to figure out how to regulate the rapidly growing industry. Recently, the Russian Federation released a tax decree that clarifies the rules and regulations on cryptocurrency trading, mining, and ICOs. In this article, we take a look at the decree and what it means for the country’s crypto industry.
Overview of the Tax Decree
At the beginning of 2018, President Vladimir Putin ordered the Ministry of Finance to develop a set of laws for cryptocurrencies and other digital tokens by July 3, 2018. In response, the Ministry of Finance released a decree proposing a set of rules and regulations for trading, mining, and ICOs.
The decree classifies cryptocurrency as “other property rights”, meaning that they are subject to taxation just like any other property. The decree also sets out rules for taxation of cryptocurrency trading, mining, and ICOs.
Taxation of Cryptocurrency Trading
The decree states that cryptocurrency trading is subject to taxation. Any income generated through the trading of cryptocurrencies is subject to income tax at a rate of 13%. All trades must be reported and any taxes paid.
Taxation of Cryptocurrency Mining
The decree also states that cryptocurrency mining is subject to taxation. Any income generated through cryptocurrency mining is subject to income tax at a rate of 13%. All mining activities must be reported and any taxes paid.
Taxation of Initial Coin Offerings
The decree further states that ICOs are subject to taxation. Any income generated through ICOs is subject to income tax at a rate of 13%. All ICOs must be reported and any taxes paid.
FAQs
Q: Are there any tax exemptions for cryptocurrencies?
A: No, according to the decree, there are no tax exemptions for cryptocurrencies.
Q: What is the rate of taxation for cryptocurrency trading and mining?
A: The rate of taxation for cryptocurrency trading and mining is 13%.
Q: Do I have to report my cryptocurrency trades and mining activities?
A: Yes, according to the decree, all cryptocurrency trades and mining activities must be reported.
Examples
Example 1
John is a cryptocurrency trader. He buys and sells various cryptocurrencies on a daily basis. According to the decree, John must report all of his trades and pay taxes on any profits he makes.
Example 2
Tom is a cryptocurrency miner. He owns a mining rig that he uses to mine various cryptocurrencies. According to the decree, Tom must report his mining activities and pay taxes on any profits he makes.
Example 3
Jill is a cryptocurrency investor. She invests in multiple cryptocurrency ICOs. According to the decree, Jill must report her investments and pay taxes on any profits she makes.
Conclusion
The decree clarifies the taxation of cryptocurrency trading, mining, and ICOs in Russia. The decree states that all forms of cryptocurrency activity are subject to taxation with a rate of 13%. Additionally, all activity must be reported to the government. This decree provides more clarity and certainty for businesses and individuals operating in the cryptocurrency industry in Russia.
Read More: Tap Here
