Cryptocurrencies as a means of payment are becoming more popular at various online shopping sites. Not long ago, cryptocurrency transactions used to be associated with illegal, shady businesses because of their high confidentiality and anonymity. They were also among the first to be used by casinos and betting shops for the same reasons.
However, a series of major economic shake-ups have also led online shopkeepers to consider accepting cryptocurrencies. After all, such payments allow you to secure your business against global inflation and canceled transactions.
A reasonable question is: is it even legal to make a profit in this way? The answer is: yes, it is. You can read about how to do it properly in this article.
There are no separate procedures or taxes for buying or selling cryptocurrencies. Therefore, such transactions are quoted in the same way as other purchases and sale transactions.
In June 2022, the Russian State Duma passed a bill on digital financial assets. For Russian companies, the tax rate on income from the sale of digital financial assets equals 13%. For foreign companies, the rate will be 15%.
An individual's income is subject to personal income tax. The profits of legal entities are taxed accordingly. Importantly, cryptocurrency transactions are taxable if, for all wallets, the annual sum of all transactions exceeds 600,000₽.
However, the taxpayer must determine the amount of the digital financial assets themselves and provide Rosfinmonitoring with information on all cryptocurrency transactions. This can be done either online at the official departmental website or in person at the office.
The deadline for payment is 15 July.
The government has not yet given a precise answer as to whether crypto mining qualifies as a business activity. However, such income is also subject to taxation: taxes are paid in the general regime.
Cryptocurrency is not yet subject to special taxes in Russia, but individuals are required to file personal income tax returns. Taxation may change in the future, so look for periodic updates.
According to the draft introduced in the State Duma, the financial result should be determined as the difference between the seller's income and his expenses for the purchase of the cryptocurrency; then, if there is no act of sale, the financial result is zero. To put it simply, if you just bought currency, you don't have to pay anything according to the acts of tax law. You have no profit, after all.
Therefore, you do not have to pay tax if:
You incurred a loss after selling the cryptocurrency; then, you are still obliged to file a personal income tax return. You don't have to pay tax on cryptocurrency in this case, but only if you can document the loss;
Your cryptocurrency simply lies in your wallet;
Your digital currency has been in your wallet for more than three years. Cryptocurrency is considered property in Russia. And since there are rules that property owned for more than three years is not taxable, you don't have to pay for the coins in your wallet.
Be careful! Penalties for individuals who fail to file the required returns on time for accounting purposes range from a hefty fine for cryptocurrency manipulation to a three-year prison sentence. Read more about the penalties at the end of the article.
So, you have received income from the sale of a cryptocurrency.
If you are an individual, here is the procedure you should perform:
Once you receive the income, you must declare it by 30 April. This is the deadline for filing a declaration for the previous year. In other words, you have until 30 April 2022 to file a tax return for 2021;
Pay the required amount by 15 July.
On 1 January 2021, the Digital Financial Assets Act came into force, effectively imposing a tax on cryptocurrencies in Russia. But this does not mean that if you have made transactions before then, they are not taxed. Consult a specialist to make sure you don't fall under the articles of the tax code and its various amendments. MEEG.IO technical support will answer all your questions in a jiffy.
According to the CFA law, legal entities and international and foreign companies that have set up branches in Russia cannot accept cryptocurrency as payment for services, work, or goods.
However, the CFA law does not specify the procedure for liability (administrative or criminal) or its availability.
In theory, the tax authorities have the right to confiscate all property obtained in such a transaction. But so far, the Ministry of Finance has not defined the procedure for dealing with such cases where cryptocurrencies are accepted as payment.
There are plenty of articles on tax violations. In addition, the statute of limitations on most of them is three years.
However, cryptocurrency owners may be subject to the following offenses:
Failed to submit a tax return by 30 April? The penalty of 5% of the tax amount for each month overdue.
The tax office cannot prove the origin of the funds? Article 174 of the Criminal Code - money laundering. At a minimum, a fine of 120,000₽ or income for a period not exceeding a year. The maximum is seven years imprisonment.
Cryptocurrency issues in the country are still just beginning to be regulated. This is of concern not only to big investors but also to ordinary citizens.
However, we can already say that it is mandatory to collect all the materials about selling cryptocurrencies. Without the necessary documents, you will hardly be able to deduct part of the purchase money or prove that your assets cannot pass the money laundering article.
P2P venues do not provide documentation. So the taxation of digital currency sales in such a marketplace is worth discussing with an expert. MEEG.IO support is available day, night, and weekend - we can solve any issue you may have.
For the safety of your funds, time, and reputation, you should also use only trusted exchanges or, better yet, cryptocurrency gateways for buying currencies. Not only will you reduce the risk of fraud, but you'll also ensure you're operating legally.
Withdrawing money legally is only possible with a bank card of Russia or EAEC countries.
If you want to withdraw money abroad, note that there is no need to report on the status of funds abroad and their movements if:
The banks are located on the territory of the EEU member state.
The account balance does not exceed 600,000 roubles, or the balance does not exceed this amount if the account balance has not changed during the year.
Thus, keeping records, paying tax on time, and monitoring changes to the tax code in a timely manner is the right way for your company to avoid getting into trouble.
The detailed statistics of our service will help you to track all the necessary transaction information without any problems. Just log into your personal cabinet and upload the report you need.
Be attentive and take a bold step towards business development with MEEG.IO.