Crypto And Digital Assets Issuers Are Exempted From VAT In Russia Now

Share This Post

Russia has approved a draft bill that exempts cryptocurrency issuers from Value Added Tax (VAT). This move is to further strengthen its pro-crypto stance through its legislation. The lower house of Russian legislature, The State Duma has passed this bill.

Reportedly, some other services related to the crypto exchanges shall also fall under exemption. The present tax rate for crypto firms that are engaged in these deals concerning digital assets stand at 20%. The continued sanction from the west have wreaked havoc in Russia after the Ukraine invasion.

Russia has been witnessing financial crisis and that has in turn made it difficult for Russia to conduct international transactions. In order to boost its economy, Russia has undertaken a positive stance on crypto to facilitate the growth of the industry.

Details Of The Crypto VAT Exemption

Apart from the exemption from VAT, this bill that has been passed stated that income tax rate will be of 13% for crypto exchanges on the first 5 million Rubles which is presently valued at $93,000 of taxable base annually, 15% on amounts that cross the aforementioned level and 15% across the board for foreign exchange operators.

The Russian Central Bank however has been on the opposing side of crypto just like other central banks across the globe. Despite opposing crypto, the state licensed the first local digital asset platform, Atomyze Russia. Post licensing Atomyze Russia, top lender Sberbank was provided a license.

The members of the State Duma has approved to draft the tax law. The bill is aimed at reducing taxes for crypto issuers and also helps defines tax rates on the income received from the sale of the assets. Now for this bill to become a law, it requires the signature of President Vladimir Putin.

Once and if the bill has been passed then the particulars of how digital assets are to be managed will be laid down. The taxation of digital assets under the bill is analogous to securities taxes at the present moment, once the bill is passed some light would be shed on the said stance.

Related Reading | BitRiver And Russian Oil Giant Team Up To Power Data Centers

Russian Banks Blocked From The SWIFT System

Russia Banks have been blocked from the SWIFT system and Group Of Seven G7 countries recently ceased purchase of newly mined and refined Russian gold. This has added further pressure on Russia’s financial condition.

Not just this, there has other sanctions which has caused Russia to default on foreign debt servicing. Anti crypto leaders in the US are of the notion that Russia may turn to crypto to avoid sanctions and so they insist on the crackdown.

Russia for the first time ever since 1917 has defaulted on the foreign debt. The year 1917 is historic as the Bolshevik Revolution had taken place that year. Russia was given a grace period of 30 days but it failed to pay interest on two different bonds.

Related Reading | Russia Still To Ban Crypto? A Bill To Ban Digital Assets Has Passed First Reading

Crypto
Bitcoin was priced at $20,000 on the one day chart | Source: BTCUSD on TradingView
Featured image from , chart from TradingView.com
Read Entire Article
spot_img

Related Posts

Ethereum Spot ETFs Odds At A Pessimistic 25%: Bloomberg Analyst

Analysts’ optimism on the likelihood of Ethereum Spot Exchange-Traded Funds (ETFs) approval in May is constantly waning, as the once optimistic senior Bloomberg Intelligence analyst Eric

UK, US Probe $20B in USDT Transfers by Sanctioned Russian Crypto Exchange

The UK and the US are reviewing tether transactions, valued at $20 billion, processed by the sanctioned cryptocurrency exchange Garantex Digital currency transactions and crude oil sales are believed

Dogecoin Jumps 37% – How High Can DOGE Go This April?

Retail and institutional investors alike are taking notice as Dogecoin (DOGE), the playful cryptocurrency born from internet fame, experiences a surprising surge Prices jumped almost 10% in a single

On the Halving, Bitcoin is Getting New Technologies: Rollups and Tokens. Sovryn’s New Initiative is How to Get In Early

Sovryn’s and BOB are offering early users a piece of the new Bitcoin economy With the Bitcoin Halving less than a month from now, Bitcoin will get two significant technological additions:

Ethereum’s Vitalik Buterin praises Worldcoin’s data privacy focus amid regulatory scrutiny

Ethereum co-founder Vitalik Buterin has praised Worldcoin’s effort to enhance data privacy amid recent global regulatory challenges In a March 29 post on social media platform X, Buterin

Ethereum Founder Buterin Lays Out ‘What Else Memecoins Could Be’

In a blog post, Vitalik Buterin, the founder of Ethereum, has laid out a vision for the future of memecoins that challenges the crypto community to rethink their potential beyond mere speculative
- Advertisement -spot_img