As a result of the sanctions imposed on Russia and its citizens since the country invaded Ukraine, Russian authorities have been looking for ways to mitigate the effects of those sanctions.
In Russia, some bills are being drafted to outlaw cryptocurrencies, while others are being drafted to reduce the tax burden on those who use cryptocurrencies in the country.
Recently, Russian lawmakers drafted legislation prohibiting those who issue digital assets and cryptocurrencies from paying Value Added Taxes (VAT) to the government. Crypto companies and digital asset issuers should be exempt from VAT payments now that it has been passed into law and enforced. This affects digital asset issuers as well as information systems operators who are involved in issuing them.Â
Furthermore, if the proposed legislation is implemented, it will result in a new set of tax rates that are lower than the current ones.Â
According to reports, the draft law by the Russian lawmakers has passed the State Duma’s second and third readings, indicating that it has been approved and can be enforced. Â
According to reports, those in the categories mentioned earlier should be able to take advantage of VAT exemptions due to the approved legislation.Â
The current income tax rate for cryptocurrencies is 20%, but this is expected to change with the newly approved law. It is expected to fall to 13% for Russian organizations, while 15% for those outside of Russia.
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