According to a Russian parliament member, private individuals earning crypto profits in Russia will be asked to pay higher taxes than businesses. Digital currencies are currently not regulated, but Russian authorities are planning to recognize these activities and tax crypto mining profits.
Taxed Similar to Securities
Cryptocurrency profits may be taxed in the same way as taxes applied on the securities. The tax will be a minimum 15% when an individual withdraws the crypto profit and deposits it in any traditional bank or financial system. This was revealed by Vladimir Gutenev, the Industry Committee head at the Russian State Duma. The lawmaker informed that the sole traders and companies involved in digital currency mining for business purposes will have to pay a minimum 6% tax rate.
Taxes Will Apply on Cryptocurrency Profits
Finmarket, a business news online portal, quoted Gutenev saying that mined coins should be taxed when the crypto asset holder cashes out. The cryptos will be treated in the same way as securities. Mined coins refer to the rewards earned by both legal entities and natural persons. These blockchain payments are deposited in cryptocurrency wallets. Crypto miners get the option to convert their digital coins into traditional money.
Crypto mining and many activities connected to cryptocurrencies are currently not legally defined clearly in Russia. The regulatory approach is still under discussion between different Russian government institutions. The Russian central bank has called digital currencies as “money surrogates” and demanded a ban on mining and trading of these assets. However, other government departments, regulatory bodies, and the finance ministry favor legalizing cryptos in place of implementing a blanket ban.