​Russia’s Taxation Service starts checking Russians’ cryptocurrency incomes

What’s new? According to BitOK, a cryptocurrency monitoring, accounting, and analytics service, the Russian Federal Taxation Service (FTS) has begun requesting information on digital asset ownership and transactions, RBC-Crypto reports. The letters are received by individuals who made transactions with cryptocurrencies during 2021 and 2022 and filed 3-personal income tax (PIT) returns. It is reported that the tax authorities ask to submit documents on requests urgently.

RBC-Crypto’s material

What else did BitOK report? Representatives of FTS, among other things, request data by phone, in particular, about already filed declarations, which are filled out with violations. In the absence of documents, the requests are about confirmations of income and expenses. BitOK said that in order to declare digital assets, the following information must be provided:

• Agreement with the exchange or another document on the basis of which cryptocurrencies are purchased;
• Names of digital assets;
• Dates of receipt;
• Market value in rubles and dollars at the date of receipt;
• Address of the crypto wallet;
• Revenue from sales;
• Expense for buying cryptocurrencies;
• Exchange rate on the date of receipt;
• Number of digital assets;
• Source of income.

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An anonymous source in FTS told BitOK that the department has not yet formulated a unified position on the taxation of cryptocurrencies, noting that if there is profit from this type of activity in rubles, the payment of tax on the form 3-PIT is mandatory.

In turn, BitOK founder Dmitry Machikhin added that Rosfinmonitoring jointly with Russian banks helps the tax authorities to identify facts of tax evasion on cryptocurrencies, as well as those who have not filed 3-PIT, in particular users of peer-to-peer (P2P) exchange services.

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According to his data, two years ago, “no more than a few thousand people” in Russia reported income from cryptocurrencies.” In 2022, the figure doubled, and Machikhin predicts that the number of such declared incomes in the country will continue to grow “by 100% per year at least.”

In March, the Ministry of Finance proposed obliging miners to declare income. The draft law provides for a maximum penalty of four years in prison. Also, the Ministry of Finance supported the tax rate for miners in the amount of 7-20%.

According to Dilvy, only 0,53% of crypto investors paid taxes in 2022.