In view of the rather rapid development of the cryptocurrency operations market, laws in this area are being actively developed. In these conditions, people who are engaged in operations in this market need to competently build their work in terms of tax law. This article will highlight the main points that you should pay attention to.
According to Art. 207 of the Tax Code of the Russian Federation, income is taxed, which means that taxes on cryptocurrencies will also have to be paid. As for the income received from operations with cryptocurrency, the Ministry of Finance explains in its letter dated May 21, 2018 N 03-04-05 / 34004.
“The Tax Code of the Russian Federation has not established a special procedure for taxing the income of individuals when they carry out transactions with cryptocurrencies. At the same time, according to Article 41 of the Code, economic benefit in cash or in kind is recognized as income, taken into account if it is possible to assess it and to the extent that such benefit can be assessed, and determined for individuals in accordance with Chapter 23 “Income Tax on Individuals”. Persons of the Code.
It would not be superfluous to also mention the letter of the Ministry of Finance of the Russian Federation No. 03-03-06 / 1 / 61152 dated 08.28.2018, according to which “Income for the purposes of Chapter 25 of the Tax Code of the Russian Federation is classified as income from the sale of goods (works, services) and property rights (Article 249 of the Tax Code of the Russian Federation), and non-operating income (Article 250 of the Tax Code of the Russian Federation) (Item 1 of Article 248 of the Tax Code of the Russian Federation). The logic of the provisions of Chapter 25 of the Tax Code of the Russian Federation implies the taxation of all income received by the taxpayer in the course of carrying out activities, with the exception of those named in Article 251 of the Tax Code of the Russian Federation. At the same time, Chapter 25 of the Tax Code of the Russian Federation does not establish a special procedure for taxing income when making transactions with cryptocurrency.”
It is also worth saying that the state is considering a bill that will oblige not only the income received from the sale of cryptocurrency, but also its very possession.
The amount of income received from operations with cryptocurrency is of great importance in taxation. First of all, it would be reasonable to first identify whether it is possible to pay taxes on all withdrawn funds or whether it is impossible, due to the large number of transactions and the margin is small, as is the case with trading and arbitrage. Because in this case, the payment of taxes on all withdrawn funds can lead to a situation where tax payments turn out to be significantly larger than income.
How best to pay tax
Cryptocurrency taxes can be paid in the following ways:
– as an IP;
– as an individual;
– as self-employed.
You can pay taxes either as an individual entrepreneur (IP), or as an individual (the second option is not recommended). If an individual entrepreneur pays taxes, then the rules of paragraph 1 of Art. 346.15 of the Tax Code of the Russian Federation: when determining the object of taxation for tax paid in connection with the application of the simplified taxation system, incomes determined in the manner prescribed by clauses 1 and 2 of Art. 248 of the Tax Code of the Russian Federation. The most commonly used taxation system is the simplified tax system of 6 percent. In addition, insurance premiums will have to be paid (for 2022, the amount will be 43,211 rubles – this is the minimum amount).
An individual is obliged to pay personal income tax at a rate of 13 percent. If you are reluctant to acquire the status of an individual entrepreneur, you can simply report in three years on personal income tax. True, this option is complicated by the prospect of being prosecuted for illegal business. This is possible with large incomes received systematically (see the definition of entrepreneurial activity, which is given in paragraph 3, part 1, article 2 of the Civil Code of the Russian Federation).
The law does not provide for the payment of taxes for the self-employed working in the field of cryptocurrency (see part 3 of article 1 of the Federal Law “On digital financial assets, digital currency and on amendments to certain legislative acts of the Russian Federation” dated July 31, 2020 No. 259-FZ ; Article 128 of the Civil Code of the Russian Federation; Article 4 of the Federal Law “On conducting an experiment to establish a special tax regime “Tax on professional income”” dated November 27, 2018 No. 422-FZ).
From the above, we can conclude that the self-employed cannot engage in the sale of cryptocurrencies, because this qualifies as the resale of property. It will be important to note that mining itself is not a resale, and it follows that the self-employed have the right to do this without problems.
What happens if you don’t pay taxes
1. Failure to pay tax on income from cryptocurrency transactions will bring with it serious risks. Let’s take a look at which ones.
A bank account may be blocked on the basis of 115-FZ. Also, problems can begin not only when receiving income for the sale of cryptocurrency, but also when the funds are subsequently used.
The bank may have questions about the movement of funds and claims in the following cases:
– buying an apartment using a bank transfer;
– withdrawal of cash in large volumes;
– withdrawal of funds from deposits, brokerage accounts, currency exchange, incl. online;
– money transfers to relatives, etc.
2. In the event that you violate the deadlines when reporting on taxes, you are threatened with penalties (see Art. 75 of the Tax Code of the Russian Federation) and fines (see Art. 119, Art. 122 of the Tax Code of the Russian Federation).
3. Criminal liability may arise in case of illegal entrepreneurial activity (Article 171 of the Criminal Code of the Russian Federation). The maximum amount before liability is RUB 2,250,000.
And also criminal liability occurs when an individual evades taxes.
Frequently asked questions related to the legalization of cryptocurrency operations:
– there are no obstacles to the legalization of income from cryptocurrency and the payment of taxes in this area;
– based on the fact that cryptocurrency transactions are carried out through the exchange and through exchangers, then even without paper contracts with cryptocurrency buyers, this will not be a problem or an obstacle to legal activities;
– sometimes there is some misunderstanding on the part of miners who believe that if they start working legally, this will entail additional work related to going to the tax office and document flow. In fact, if you correctly set up all the necessary procedures in electronic format, then most of the interaction with the tax service can be automated.
– it would be better to register as an individual entrepreneur;
– use a cash register;
– punch on the cash register all receipts to the bank card, cash and to the current account from cryptocurrency transactions;
– include all income in the tax return;
– pay a tax equal to 6%.