Home Cryptocurrency News Russian Ministry of Labor: No Tax on Bitcoin for Government Officials

Russian Ministry of Labor: No Tax on Bitcoin for Government Officials

5 min read
0
126


· January 11, 2018 · 11:45 am<!– Excerpt

Russian civil servants will not need to declare cryptocurrency gains in this year’s income tax report, the government has suggested. Russia Still Lacks Legal Framework For Tax Analyzing the yearly recommendations for income tax declaration from the country’s Ministry of Labor and Social Protection, sources claim that government workers’ profits from cryptocurrency can be left out altogether. The annual reporting period for 2017 comes at a time when Russia is still developing hard-and-fast legislation for Bitcoin

End Excerpt –>

Russian civil servants will not need to declare cryptocurrency gains in this year’s income tax report, the government has suggested.


Russia Still Lacks Legal Framework For Tax

Analyzing the yearly recommendations for income tax declaration from the country’s Ministry of Labor and Social Protection, sources claim that government workers’ profits from cryptocurrency can be left out altogether.

The annual reporting period for 2017 comes at a time when Russia is still developing hard-and-fast legislation for Bitcoin and altcoin usage, which it is due to finalize in June.

The lack of “legal specifications” is the principal reason for the government’s choice not to get involved in tax calculations this period, local news outlets claim.

As Bitcoinistpreviously reported, the package of laws currently being developed demonstrates a need to address current knowledge gaps about cryptocurrency present at both legal and legislative levels.

Part of the plans includes the development of a dedicated database with definitions of common terms associated with Bitcoin and its ilk, such as ‘digital transaction,’ ‘distributed ledger’ and ‘mining,’ in order to improve the situation.

Authorities’ Chinese Whispers

Tax obligations for cryptocurrency holders in Russia came under the spotlight late last year after the Ministry of Finance produced a letter claiming conversely that the onus was already on regular citizens to report capital gains.

Reactions at the time also focused on the lack of legal framework and understanding, an industry lawyer commenting that the only way of applying a tax on crypto-to-fiat operations would be at the point of conversion in all cases.

Head of Legal Services for Deloitte CIS Technology Projects, Artem Tolkachev, told local magazine BFM:

Another approach is impossible, in my opinion, neither from the point of view of tax control and administration of taxes, nor from the point of view of determining the tax base, because the exchange rate is constantly changing.

The angles given by both ministries are meanwhile exemplary of the often contradictory approach to cryptocurrency regulation in Russia, with various figures giving conflicting accounts of the status quo throughout 2017.

What do you think about the decision not to tax government workers’ cryptocurrency gains in Russia this year? Let us know in the comments below!


Images courtesy of Wikimedia Commons, Shutterstock

Show comments

Let’s block ads! (Why?)


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Bitcoin Price Analysis: BTC/USD Another Pullback or Possible Reversal?

Bitcoin is trending lower in a descending channel on its 4-hour time frame and is currentl…