4 Jun the Federal tax service has sent to the tax authorities a letter from the Director of the Department of tax and customs policy of the Russian Ministry of Finance A. V. Sazanov, which establishes the rules for the taxation of cryptocurrency trading. The document is called “On the payment of personal income tax in the Commission of physical persons of transactions for the purchase and sale of cryptocurrencies”.

The Finance Ministry says that the legislation does not specify the legal status of cryptocurrencies, and a special order of taxation of income of natural persons in the transactions with them is not installed. However, because the Tax code requires it be interpreted in favor of the taxpayer all the doubts and ambiguities of legislative acts on taxes and fees, and revenue recognized “economic benefit”, the Ministry proposes in this case to take into account the existing provisions of the tax code. In the Ministry’s letter says:

The tax base for operations of purchase and sale of cryptocurrencies in rubles is determined as the excess of the total amount of income received by the taxpayer in the tax period from the sale of the relevant cryptocurrency, over the total amount of documented costs for its purchase.

Based on this understanding of the tax base, the Ministry of Finance instructs:

Physical persons receiving remuneration from individuals and organizations on the basis of contracts grazhdansko-legal character, shall independently calculate the amount of tax payable to the budget, […] and submit to the tax authority at the place of their registration the appropriate tax Declaration.

Thus, individuals are required to independently calculate taxes on transactions with cryptocurrencies and to submit declarations to the tax authorities.