Russian Government Approves Income Tax on Digital Currency Transactions

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Russia Plans to Introduce Income Tax on Digital Currency Transactions

Russian authorities are planning to introduce a personal income tax (PIT) on profits from digital currency transactions. The initiative has already been approved by the government commission on legislative activity, according to TASS.

The proposed amendments to the Tax Code will apply to all transactions involving digital currencies, including their exchange. The changes aim to align existing legislation with the new law "On Digital Currency and Digital Rights".

Under the draft bill, losses from cryptocurrency transactions cannot be carried forward, expenses will be accounted for using the FIFO (first in, first out) method, and services provided by digital depositories and cryptocurrency exchanges will be exempt from VAT. Additionally, the sale of "non-delivery" foreign digital rights will also be exempt from taxation.