The Law "On Financial Digital Assets" brought crypto assets out of the shadows and equated them to property. Now the legislation has a number of restrictions that must be followed when making transactions with digital coins
Since January 1, 2021, in Russia, the status of property has been fixed at the legislative level for the cryptocurrency. This became possible thanks to the Law on Financial Digital Assets. Now Russians can officially declare their income from cryptocurrencies.
Also, new rules introduce taxation on profits from digital assets. Lawyers interviewed by topplabs.org told how to use cryptocurrencies in Russia in order not to violate the law.
Buying / selling cryptocurrency
Since cryptocurrency is now equated to property, it is subject to personal income tax (PIT). However, there is no need to pay tax on each purchase / sale of digital assets, since tax deductions occur at the end of the financial year, explained Yuri Brisov, a member of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association. According to him, transactions with cryptocurrencies in the amount of 600 thousand rubles or more must be declared even in the absence of income, in accordance with the new rules of anti-money laundering legislation, which entered into force on January 10, 2021.
“For example, when buying one bitcoin at the rate of $ 50 thousand and a further fall of the coin to $ 40 thousand, there is no taxable income, but you still have to inform the tax authorities about this transaction, otherwise a fine under Article 198 of the Criminal Code of the Russian Federation (non-payment of taxes), and criminal liability is also possible in case of systematic violations, ”the lawyer added.
What can be paid
According to the law "On financial digital assets", it is prohibited to accept cryptocurrency as a counter-provision for goods, works and services. In other words, it is impossible to sell something for digital coins, explained Dmitry Kirillov, a teacher at the Moscow Digital School.
According to the expert, the law does not prohibit buying something for cryptocurrency. Also, in each case of such a transaction, the question of where exactly such a transaction was made will be investigated, added Dmitry Kirillov. For example, if a Russian citizen pays for the subscription of Time magazine with cryptocurrency, then this transaction will be legal on both sides, since in the United States (under whose tax jurisdiction the publication is located) digital assets are not prohibited as a means of payment, the lawyer noted.
Sanctions for violations
Despite the ban on selling goods and services for cryptocurrency, the law "On financial digital assets" does not provide for punishment for this offense, notes Dmitry Kirillov. According to him, bills that propose to establish administrative and even criminal liability for such an offense are only being developed now.
According to Yuri Brisov, the acceptance of cryptocurrency as payment may fall under Articles 172 of the Criminal Code of the Russian Federation (illegal banking) and Art. 199 of the Criminal Code of the Russian Federation (tax evasion). The lawyer says that in some cases, when using an illegal means of payment, Art. 159 of the Criminal Code of the Russian Federation (fraud).