Taxation and Tax Administration of Transactions with Crypto Assets in the Positions of the Fiscal Authorities of Russia

Abstract

The subject of the article is to identify the approaches of the fiscal authorities of Russia to taxation and administration of transactions with crypto assets in relation to various types of taxes. The author set the tasks: to investigate the explanations of the fiscal authorities of Russia regarding the need to impose personal income tax on income received by individuals when performing transactions with crypto assets; to update the position regarding the need to impose corporate income tax on profits received as a result of transactions with crypto assets; to understand the procedure for taxation of income of taxpayers applying special tax regimes; to study the issues of taxation VAT on the sale of crypto assets, the occurrence of property tax on the possession of crypto assets; analyze the need to submit specialized reports to the tax authorities regarding transactions or ownership of crypto assets. The study of the explanations of the fiscal authorities of Russia over the past five years has made it possible to update the positions of the state in terms of taxation and tax administration of transactions with crypto assets in the absence of appropriate rules in tax legislation. The author of the article concluded that, in general, the fiscal authorities consistently consider for various taxes that the general rules established by the tax legislation of the Russian Federation are applicable to the taxation of transactions with crypto assets. The absence of special taxation rules does not mean that there is no need to declare and tax the income received accordingly. At the same time, according to the author, the adoption of relevant regulations regarding the mining of digital currencies, the determination of their legal status for tax purposes would make it possible to remove issues that have not been definitively resolved to date regarding the taxation of the issuance and sale of digital currencies, including the possibility of exemption from personal income tax when owned for more than three years; the use of special tax regimes; there is no need to impose VAT on the relevant transactions, which would correspond to the international experience of taxation of transactions with these assets.