Home Cryptocurrency More Russians are disclosing their cryptocurrency incomes: report

More Russians are disclosing their cryptocurrency incomes: report

by Gordon James

According to a new report, the number of disclosed cryptocurrency holdings in Russia has increased in recent months.

Russia’s Izvestia news agency reported Thursday that more Russians are disclosing their income from cryptocurrency trading for tax purposes. The report uses data from consulting and law firms such as KPMG, PwC, FTL Advisers and the Moscow-based public policy think tank, the Center for Strategic Research.

We have noticed that Russian residents have started to voluntarily report income from transactions with digital assets, mainly cryptocurrencies, in their tax returns, said Maria Kukla, partner at FTL Advisers.

She noted that it was too early to determine whether this trend would expand. The deadline for filing foreign exchange tax returns is 1. May and a lot can change between now and then, according to Kukla.

Evgeny Sivushkov, head of individual taxes at PwC Russia, noted that interest in disclosure of cryptocurrencies has increased in the current tax period. According to Sivushkov, this new trend has been fuelled by the adoption of Russian legislation on digital crypto financial assets, as well as by the increased attention of tax and compliance authorities to the origin of Russian foreign income and assets.

PwC and FTL Advisers did not immediately respond to requests for comment from Cointelegraph.

Declarations of cryptocurrencies are reportedly on the rise, despite the fact that Russia has not officially enacted any specific laws regarding the taxation of cryptocurrencies. However, according to Izvestia sources, the Russian Federal Tax Service claims that the crypto tax order on personal income is formally described in a letter from the Russian Ministry of Finance issued in May 2018.

According to the letter, the tax base for trading cryptocurrencies in Russian rubles is determined as the difference between the total amount of income received by taxpayers from the sale of cryptocurrencies and the total amount of documented expenditure on their acquisition.

Russia is working on a new law requiring Russian residents to pay taxes on profits from cryptocurrency trading. The law, which was approved in first reading by the Duma in February, requires residents to report cryptocurrency transactions if their total value exceeds 600,000 rubles ($7,800) per year.

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