Russian lawmakers have approved amendments regulating the taxation of transactions with digital assets. The legislation concerns business operations with cryptocurrencies and tokens. In some cases, the burden for Russian companies will be reduced as compared to foreign entities.
The legislation clarifies various aspects of the taxation of cryptocurrencies, as DFA is currently the main term in Russian law that applies to them. A new law “On Digital Currency” should expand the legal framework and definitions for crypto assets this fall.
When exercising digital rights, the legal term that encompasses security and utility tokens, the tax base will be determined as the difference between the sale and the acquisition price of the respective digital right, the report detailed.
Russian legal entities owning digital tokens will pay 13% on the amount of income received from them while foreign-based companies will be charged at a higher, 15% rate, the new tax provisions dictate, giving a slight advantage to local businesses.
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