Federal Tax Service of Russia: Bitcoin sales are currency transactions

Regulation | August 12, 2016 By:

The Federal Tax Service of Russia is encouraging its citizens to report the purchase or sale of cryptocurrencies as currency transactions.

According to the agency, regardless of their status, sale or purchase of cryptocurrencies are deemed currency transactions under the Russian law and should be reported to tax authorities.

“The acts of acquisition by a resident from a non-resident and alienation by a resident to a non-resident of currency valuables, currency of the Russian Federation and domestic securities on lawful terms, and the use of currency valuables, currency of the Russian Federation and domestic securities as a means of payment are deemed currency transactions. Consequently, the transactions of purchase and sale of cryptocurrency (virtual currency) between residents and non-residents, with the utilization of currency valuables and (or) currency of the Russian Federation, are, in fact, currency transactions,” says an official letter from the main tax authority of Russia.

The letter goes on to stipulate that Russian citizens are required to report any currency movements to or from a bank outside of the country to local tax agencies.