Russian Parliament Approves Tax Break for Digital Asset Exports

Russian lawmakers on Tuesday approved a bill that would exempt issuers of digital asset and cryptocurrencies from value-added tax.

Russia has long expressed skepticism about cryptocurrencies and other digital assets, citing the central bank's concerns over financial stability. But in February, the regulator granted blockchain platform Atomyze Russia the first license to exchange digital assets. This was soon followed by a license for Sberbank (SBER.MM). Unprecedented Western sanctions over events in Ukraine have hit the heart of Russia's financial system, and lawmakers have scrambled to introduce new legislation to soften the blow. The draft law, approved by State Duma members in the second and third readings on Tuesday, provides for value-added tax exemptions for issuers of digital assets and operators of information systems involved in their issuance. It also sets tax rates on income from the sale of digital assets. The current rate on transactions is 20%, the same as on standard assets. Under the new law, the tax will be 13% for Russian companies and 15% for foreign companies. The draft law still needs to be reviewed by the upper house and signed by President Vladimir Putin before it becomes law.