Russia Wants to Tax Crypto Miners on Unrealized Gains

cryptonews.com:

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

The Federal Tax Service (FNS) has unveiled plans to tax Russian crypto miners on unrealized gains, meaning they may have to pay taxes on coins they are yet to sell.

Per the Russian newspaper Vedomosti, the FNS wants to launch a “two-stage” tax system for crypto miners.

Alexey Katyayev, the head of the Interregional Inspectorate for the FNS’ “Largest Taxpayers” group, explained the plans at a meeting of the recently formed Industrial Mining Association.

However, Katyayev, conceded that while tax officials want to apply a “classical system” to miners, “no final decision has yet been made” on the matter.

Katyayev spoke of the possibility of ordering miners to make “advance payments on mined cryptocurrency.”

This, he said, would be the “first stage.” And, he explained, this would become payable once miners receive coins in their crypto wallets.

“Once the miner has the right to dispose of their cryptoassets,” a taxable event would have occurred, in the FNS’ view.