Russia may soon recognize Bitcoin (BTC) and other cryptocurrencies as property.
The parliament’s lower house, the State Duma, has reportedly passed the first reading of a bill that would tax digital assets.
According to state news agency RIA Novosti, the proposed legislation requires local and foreign residents and organizations within Russia to report crypto transactions that amount to 600,000 rubles, or about $8,130, per year based on the market price of the cryptocurrency.
Offenders who fail to pay or make incomplete tax payments will pay a penalty equivalent to 40% of the amount due.
Those who submit late or inaccurate information will also be fined 10% of the undeclared amount.
According to the proposal, authorities can request the bank statements of accounts used for crypto transactions.
Before a second vote on the proposal, the State Duma’s Committee on Budget and Taxes will make amendments to clarify which transactions will be exempt from VAT and who will be required to submit reports on crypto transactions.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/mariakray