Russia Approves Cryptocurrency Trading Income Tax Proposal

Gate News message, April 28 — Russia's government legislative activities committee has approved a cryptocurrency trading income tax proposal submitted by the Ministry of Finance. The proposal requires taxation of personal income from cryptocurrency exchanges and other trading activities, with costs calculated using the first-in-first-out (FIFO) method.

The legislation prohibits taxpayers from carrying forward cryptocurrency trading losses to future tax periods. However, services provided by digital custodians and crypto exchange operators, as well as certain non-deliverable overseas digital rights transactions, will be exempt from value-added tax (VAT). For tokenized bonds and other debt-type digital financial assets, the proposal establishes special tax calculation methods and permits loss carryforward.

This follows Russia's State Duma passing the first reading of the government's "On Digital Currency and Digital Rights" bill, which would grant the Russian Central Bank authority to approve exchanges and set market access requirements. The legislation also establishes purchase limits for citizens acquiring cryptocurrencies.