Russia might earn up to $13 billion in crypto tax annually

The projections, according to the analytic note, are only a rough guide and are based on a baseline tax slab of 6%, which might change dramatically once regulations are in place.

According to government estimates, the Russian government will collect up to 1 trillion rubles ($13 billion) in crypto tax per year.

According to reports, The Bell, a local Russian publication, obtained a government analytic note that anticipated annual tax collections. Russians own almost $214 billion in cryptocurrency, according to the letter’s writers. With the substantial amount of over-the-counter (OTC) crypto deals, the number of users on overseas exchanges is believed to be about 10 million. Even the simplest tax imposition, according to the government agency, could yield anywhere from 146 billion rubles to 1 trillion in crypto tax income.

The memo proposes two taxation methods: one for crypto platforms including exchanges, intermediaries, and OTC desks, and another for investments and crypto income. According to the analytical group’s estimations, the state might earn 90 to 180 billion rubles ($2.4 billion) each year from crypto platforms, with a base tax of 6%, and additional 606 billion rubles ($8 billion) from taxing crypto investments and income.

Without the mining industry, the overall crypto market of $200 billion would earn an estimated $12 billion in income, assuming a current basic tax of 6%. It’s also worth noting that Russians own only 1% of world wealth, compared to 12% of global cryptocurrency holdings.

The government study also mentions the crypto mining industry, which is widely dispersed and unregulated, with the majority of operations being unaccounted for. According to the note, the estimate is simply based on a single tax band, and the original taxes might look significantly different depending on the market’s actual size.

After the central bank’s proposal for a blanket ban on crypto mining and trading was rejected, Russia is going forward with its strategy to regulate the vast crypto market. The Russian finance ministry has already submitted a crypto framework for assessment, as Bitcoinsupports has reported, and new restrictions are anticipated to be implemented soon.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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