Taxation of cryptocurrencies. Penalties for non-payment and ways to avoid them
According to Russian legislation, cryptocurrency belongs to the category of property. Profitable transactions with cryptocurrency are subject to the rules for calculating profits minus the costs incurred for its acquisition.
The price of the cryptocurrency is calculated at the time of receipt of it as property or at the time of receipt of profit from the sale of the cryptocurrency to the taxpayer's settlement account.
Mining is another matter. To date, there is no legislative definition of this type of activity, so only profit can be subject to taxation.
If the virtual assets obtained in the mining process were not exchanged for fiat money, then there would be no obligation to pay tax. In the case of an exchange, the entire amount of income received in rubles or foreign currency is taxed, minus documented expenses for equipment, maintenance and repair, electricity, rent, etc.
Sanctions for non-payment of taxes.
You will have to pay the full cost of the tax plus a fine of 20% of the amount of unpaid tax. If the intent for non–payment is proved, then you will have to pay a fine of 40% of the amount of unpaid tax. Although it will be difficult to prove malicious intent until the issue of taxation is finally resolved. The tax authorities do not fully understand exactly how to apply the norms of tax legislation to certain situations.
There are 2 ways to avoid tax liability:
1. The easiest way is to pay taxes on time in full and sleep peacefully.
2. Optimize the tax burden, depending on the form of doing business, jurisdiction, types of activities, and specific tasks. Here it is necessary to take into account that individuals, self-employed, and individual entrepreneurs pay taxes based on different rates.
Therefore, if you don’t want to pay too much and don’t want to allow underpayments, it is better to consult a specialist.
The price of the cryptocurrency is calculated at the time of receipt of it as property or at the time of receipt of profit from the sale of the cryptocurrency to the taxpayer's settlement account.
Mining is another matter. To date, there is no legislative definition of this type of activity, so only profit can be subject to taxation.
If the virtual assets obtained in the mining process were not exchanged for fiat money, then there would be no obligation to pay tax. In the case of an exchange, the entire amount of income received in rubles or foreign currency is taxed, minus documented expenses for equipment, maintenance and repair, electricity, rent, etc.
Sanctions for non-payment of taxes.
You will have to pay the full cost of the tax plus a fine of 20% of the amount of unpaid tax. If the intent for non–payment is proved, then you will have to pay a fine of 40% of the amount of unpaid tax. Although it will be difficult to prove malicious intent until the issue of taxation is finally resolved. The tax authorities do not fully understand exactly how to apply the norms of tax legislation to certain situations.
There are 2 ways to avoid tax liability:
1. The easiest way is to pay taxes on time in full and sleep peacefully.
2. Optimize the tax burden, depending on the form of doing business, jurisdiction, types of activities, and specific tasks. Here it is necessary to take into account that individuals, self-employed, and individual entrepreneurs pay taxes based on different rates.
Therefore, if you don’t want to pay too much and don’t want to allow underpayments, it is better to consult a specialist.
