The Russian Ministry is making an attempt to melt the necessities for crypto tax reporting
The Russian Ministry of Finance has proposed new amendments to the country's upcoming law on crypto assets that could lower the requirements for cryptocurrency taxpayers, the RBK news agency reported Thursday.
According to a package of bills, individuals are required to report their holdings if annual transactions exceed 600,000 Russian rubles (about $ 7,800). In a previous proposal, the ministry had requested disclosure if transactions exceed 100,000 rubles (about $ 1,300) in a year.
With the law set to be passed by January, the ministry would like the stocks for the next tax year to be announced by April 30, 2022 at the latest. The value of the reported crypto is calculated by the national tax authority on the basis of the prices at the moment of the transactions, reads the invoice.
If you do not declare the full amount of the cryptocurrency in a timely manner and do not pay taxes on it, fines will be imposed. If a taxpayer fails to declare their crypto for three years in a row, the penalty becomes tougher: up to six months in prison for undeclared crypto worth 15 million rubles (~ $ 195,000) and up to three years in prison for 45 million rubles (~ $ 586,000 ) and more.
Cryptocurrency miners and OTC brokers must report deals to Rosfinmonitoring, which is tasked with preventing money laundering and terrorist financing. The agency had reportedly previously planned to develop its own blockchain tracing tool to link crypto addresses to users' identities.
A previous bill by the regulator aimed to ban miners in Russia and using Russia-based infrastructure from receiving rewards for their work in cryptocurrency. This formulation raised concerns that mining might be banned in Russia as a whole and has not been clarified since then.
However, these amendments are not as strict as one of the first draft laws that sought punishment for facilitating crypto transactions in Russia with a prison sentence of up to seven years. This version sparked an outcry in the Russian crypto community and even criticism from other ministries.
The Treasury Department also previously proposed restrictions on the purchase of crypto for unqualified investors, which would limit the purchase of digital assets worth no more than 600,000 rubles (about $ 7,740) within a year.