PANews reported on June 10th that, according to Bits.media, the Russian State Duma passed the government's proposed cryptocurrency tax reform bill in its first reading. The tax base is the positive difference between cryptocurrency trading income and expenses, allowing investors to offset losses against profits within the same tax period. Brokers and trustees are required to withhold and remit personal income tax as tax agents, recognizing only documented expenses and retaining copies of supporting documents for five years. Foreign-issued digital financial assets will be considered cryptocurrencies.
The coupons of ruble-denominated digital debt instruments traded on the Moscow Exchange are taxed at a preferential rate, similar to corporate bond interest. Authorities allow losses on digital debt assets to be carried forward to future tax periods and offset against gains and losses on securities and derivatives, but this provision takes effect "after the stabilization of digital debt asset trading." Sales of foreign digital rights without physical delivery are exempt from VAT. The Duma's Budget and Tax Committee recommends that, during the second reading, licensed cryptocurrency exchanges be required to collect personal income tax on behalf of investors.