Russia’s Federal Taxation Service authorizes the payment of tax on income from the sale of cryptocurrencies under the simplified system

In their ruling, officials took into account the absence of a legally defined status for digital assets

10.07.2023 - 09:25

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What’s new? The Federal Taxation Service (FTS) of the Russian Federation has issued a clarification on the taxation of income from the sale of cryptocurrencies. The regulator allowed two taxation regimes to be applied: personal income tax and simplified taxation system (STS). Officials also clarified that the sale of digital assets is currently considered a property deal, as their legal status has not yet been established at the legislative level.

Statement of the Federal Taxation Service

Details of the FTS decision. The tax base is determined in rubles as the excess of the total amount of income from the sale of a cryptocurrency over the total amount of documented expenses for its purchase.

The investor calculates and remits personal income tax on income from cryptocurrency transactions independently. In addition, it is necessary to submit a declaration form 3-NDFL by April 30 of the year following the expired tax period.

Citizens can also choose a simplified taxation system, under which there are two approaches: “Income” and “Income minus expenses.” So, if a company or an individual entrepreneur chooses the first option, the base for calculation will be income from the sale of cryptocurrencies, if the second, the base is calculated as the difference between income and expenses for the purchase of digital assets.

In April, the Federal Taxation Service began requesting information on the ownership of digital assets and transactions. Individuals who have made transactions with cryptocurrencies during 2021 and 2022 and filed 3-NDFL declarations receive letters.

In May, representatives of the Ministry of Finance named the Federal Taxation Service as a candidate for the role of crypto market regulator, but the final decision will be made by the government.

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