The State Duma adopted a draft law on taxation of cryptocurrencies in the first reading

The State Duma adopted a government bill on taxation in the field of cryptocurrency circulation.

According to the document, digital currency is recognized as property, and income from digital currency operations will be subject to income tax or personal income tax. The digital currency will not be subject to depreciation, and transactions related to its circulation will not be recognized as subject to VAT.

In accordance with the draft, the tax authorities will have the right to request the bank statements on the accounts used in transactions with digital currency in case of any signs indicating a possible violation of tax legislation. However, this will require the consent of the head or deputy head of the Federal Tax Service.

The draft law provides that citizens of the Russian Federation, foreign citizens, stateless persons permanently residing in the country on the basis of a residence permit, Russian organizations, their branches and representative offices, international organizations established in the territory of the Russian Federation that have the right to dispose of digital currency recorded in electronic wallets, will be required to report to the tax authorities about this right, the turnover of funds and the balance if the turnover of digital currency for the year exceeds 600 thousand rubles.

In case of non-payment or incomplete payment of tax, a fine in the amount of 40% of the unpaid tax is imposed. For failure to submit, late submission, or submission of a declaration with false information, a fine of 10% of undeclared digital currency is imposed. In case of violation of the declaration terms, the fine will be 50 thousand rubles.