Russia Approves Potential Tax Exemption for Crypto Companies

Legislators of Russia recently passed a draft law that might exempt digital asset and crypto issuers from paying value-added tax (VAT). Currently, the tax rate for companies conducting digital asset transactions is 20%. Under the new rate, this will be dropped to 13% for Russian exchanges on the first $94,000 annually. While foreign crypto exchanges and other companies will be subjected to 15% VAT, according to local media. The draft bill was passed by members of Russia’s State Duma (federal assembly) on Tuesday after the second and third readings. It will purportedly apply value-added tax exemptions to both digital asset issuers and “information systems operators” who help in their issuance. In addition to the tax cuts for issuers, the draft law approved by State Duma members also establishes tax rates on income earned from the sale of crypto assets. However, the legislation must still be reviewed by the upper house and signed by President Vladimir Putin to become law. Crypto Winter Gets Worse Since the war in Ukraine began in late February, crypto markets have plunged 46%, shedding more than $800 billion from total market capitalization to current levels. Markets continue to be red today, with a 1.4% decline on the day to $954 billion during the Wednesday morning Asian trading session.The post Russia Approves Potential Tax Exemption for Crypto Companies appeared first on Cryptoknowmics-Crypto News and Media Platform.