- February 8, 2022
- Posted by: Bogdan
- Category: Bank of Russia, Bitcoin Mining, Cryptocurrencies, Russia, Taxes
The Russian government is expected to collect up to 1 trillion rubles ($13 billion) in crypto tax each year, as per an estimation by the authorities.
The Bell, a local Russian publication, reportedly got its hands on the government analytic note that estimated the yearly tax revenue. According to the letter’s authors, Russians hold 12% or nearly $214 billion in crypto. The number of users on foreign exchanges is estimated to be about 10 million, along with a significant number of over-the-counter (OTC) crypto trades. The government agency believes even the most straightforward tax imposition can generate anywhere from 146 billion to 1 trillion rubles in crypto tax revenue.
The note suggests two possible taxation methods: one for the crypto platforms such as exchanges, intermediaries, and OTC desks, another tax for investments and income from crypto. According to the estimates by the analytical group, the state could see revenue of 90 to 180 billion rubles ($2.4 billion) a year from crypto platforms with base taxation of 6% and generate another 606 billion rubles ($8 billion) in revenue by taxing crypto investments and income.
Assuming a basic tax of 6% at present, the total crypto market of $200 billion would generate an estimated $12 billion in revenue without the mining industry. It is also important to note that Russians hold only 1% of global wealth compared to 12% of global crypto holdings.
The government report also notes the highly scattered and unregulated crypto mining industry, most of which is unaccounted for. The note reportedly said that the estimation is based purely on the simple tax bracket, and the original taxation could look very different based on the actual size of the market.
Russia is moving ahead with its plan to regulate the large crypto market after the central bank proposal for a blanket ban on crypto mining and trading was declined. As Cointelegraph reported earlier, the Russian Finance Ministry has already submitted a crypto framework for review, and new regulations are expected to make their way soon.