According to a new report, the number of reports of ownership of cryptocurrencies in Russia has increased in recent months.
Russian news agency Izvestia reported on Thursday that Russians are increasingly disclosing cryptocurrency trading profits for tax purposes. The report includes data from consulting and law firms such as KPMG, PricewaterhouseCoopers, FTL Advisers and the Moscow Center for Strategic Public Opinion Research.
“We have noticed that Russian citizens have begun to voluntarily disclose income from transactions with digital assets, mainly using cryptocurrency, in their tax returns,” said Maria Kukla, partner at FTL Advisers.
She indicated that it is too early to decide whether this trend will spread or not. The reporting period for foreign currency tax ends on May 1st, and until that time, a lot can change on the doll.
Evgeny Sivushkov, Director of Individual Taxes at PwC Russia, said that interest in identifying holders of cryptocurrencies has increased during the current tax return period. According to Sivushkov, the new trend was due to Russia’s adoption of the crypto law “on digital financial assets”, as well as the increasing interest by tax authorities and services to control the origin of Russian income and foreign assets.
FTL advisers did not immediately respond to Cointelegraph’s request for comment. PricewaterhouseCoopers Russia declined to comment.
The reported increase in the number of cryptocurrency applications comes despite the fact that Russia has not officially enacted any specific legislation regarding taxation of cryptocurrencies. However, according to Izvestia sources, the Federal Tax Service of Russia states that the procedure for taxing individual income in cryptocurrency is officially described in a letter from the Ministry of Finance in May 2018.
According to the letter, the tax base of trading cryptocurrencies in Russian rubles is defined as “the increase in the total income that taxpayers receive from selling the cryptocurrency over the total amount of the documented expenses for its acquisition.”
Russia is promoting a new bill requiring Russian citizens to pay income tax on trading cryptocurrencies. The bill, which was approved by the State Duma on its first reading in February, requires residents to report cryptocurrencies if their total exceeds 600,000 rubles ($ 7,800) per year.