Russian Council of Federation passes law on taxation of DFA transactions

The law will come into force from the date of its official publication

08.07.2022 - 16:30

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What’s new? The Federation Council of the Russian Federation has passed a law establishing the specifics of taxation involving digital financial assets (DFAs) transactions and utilitarian digital rights (DPRs). It clarifies the treatment of VAT, personal income tax (PIT), and income tax. The government noted that the establishment of certain conditions is necessary for the effective operation of the digital economy, the implementation of digital projects, and the development of a competitive digital rights market in Russia, the Prime news agency reports.

Information on the Prime website

Document content. The income tax rate for Russian operators will be 13% (in case exceeding the taxable base of 5 million Russian rubles a year — 15%). For foreign operators, the rate will be 15%. Income tax will also be imposed on the operations of foreign organizations that do not have a representative office in the Russian Federation but who receive income from sources within the country.

Operations involving the implementation of DFAs within Russia, as well as the services of issuing operators and exchange operators, are exempt from VAT. However, the benefit does not apply to services involving the granting of rights to use the software.

Withholding and payment of personal income tax will become the task of information systems operators and DFA exchange operators.

The law will come into force from the date of its official publication.

On July 6, the Russian State Duma passed a law on the regulation of the circulation of DFAs, which provides for a ban on payments for goods and services with them within the country. The law will come into force from the date of its official publication, and the changes will take effect 10 days later.

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