Russia to Integrate Digital Ruble into Tax System
Russia is planning to integrate its central bank digital currency (CBDC), the digital ruble, into its tax system by the end of the year. The State Duma’s Committee on Budgets and Taxes has approved a bill that aims to amend the Tax Code for this purpose. The legislation will allow tax bodies to incorporate the digital ruble into Russia’s system of tax regulation and control. It will introduce concepts such as “digital ruble wallets” and exempt operations related to these wallets from VAT. The bill will also require parties to keep records of transactions and income in digital ruble wallets, as well as CBDC-related expenses.
Draft Law Approval and Key Figures
The bill, brought forward by lawmakers Anatoly Aksakov and Olga Anufriyeva, along with senator Nikolai Zhuravlev, has been approved by the committee. Aksakov, who is the chief architect of Russia’s crypto legislation and the head of the Duma’s Financial Markets Committee, has previously highlighted the CBDC’s cross-border potential. Anufriyeva is a former Deputy Minister of Taxes and Duties, while Zhuravlev is the former CEO of Sovcombank.
Timeline and Implementation
The bill will be presented before the Duma on September 20 for its first reading. If it receives approval, it will proceed to a second reading. Following presidential approval, the bill could come into effect on January 1, 2024, or potentially earlier.
Separation from Biometrics Identification Platform
The Central Bank clarified that its digital ruble project is separate from efforts to launch a biometrics-powered identification platform. The CBDC pilot began in mid-August across 11 cities in Russia.
Hot Take: Russia Moving Forward with CBDC Integration into Tax System
Russia is taking a significant step towards integrating its digital ruble into the country’s tax system. With the approval of a new bill, tax bodies will be able to incorporate the digital ruble into their regulatory and control framework. This move demonstrates Russia’s commitment to embracing digital currencies and leveraging their potential benefits. The introduction of digital ruble wallets and exemption from VAT for related operations will further facilitate the use of CBDCs in everyday transactions. The bill’s approval by key figures and its planned timeline for implementation signify Russia’s progress in establishing a comprehensive framework for its CBDC.
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