Russia’s State Duma passed bill on the taxation of DFAs

Transactions on the sale of digital assets will be subject to VAT, and the introduction of personal income tax and corporate income tax is provided for income from the sale

28.06.2022 - 15:30

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What’s new? The State Duma in the second and third readings passed a bill on the taxation of transactions with digital financial assets (DFA). According to the document, operations on DFA sales will be subject to VAT (Value Added Tax), and introduction of personal income tax and corporate income tax is foreseen for the income from their sale.

The TASS material

What else is known about the bill? VAT will be levied on services of digital asset issuance and exchange operators. By February 1, 2023, system operators must provide the tax service with information on transactions with users made from the time the law entered into force until December 31, 2022.

For Russian organizations owning digital rights, the tax on income will be 13%, for foreign companies — 15%. In this case, the tax base for transactions with securities that do not circulate on the organized market can be reduced by the amount of the loss on transactions with DFAs.

On June 14, the State Duma passed in the first reading a bill which bans payments for goods and services with the help of DFAs. The document was prepared by Anatoly Aksakov, Chairman of the Committee on Financial Markets of the State Duma, to prevent the use of digital assets as a means of payment.

On June 22, Aksakov introduced in the lower house of Parliament a bill, according to which there is administrative liability for persons who illegally issue and exchange DFAs.

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