The bill explains the difference between decentralized cryptocurrencies and centralized virtual money; it also clarifies the tax regime aiming at crypto trading and mining. The text of the draft has been published on the website of the country’s Government Legislation Center.
The goal of the bill is to clarify the procedure for reporting and paying taxes on revenues from crypto activities. The law defies virtual currency as a “digital representation of value” to follow the requirements of the Act on Counteracting Money Laundering and Terrorism Financing. Furthermore, virtual currencies can be accepted as means of payment, stored and transferred electronically.
Another important point: revenues from virtual currency transactions may be declared as part of individuals’ taxable income and businesses.These transactions include sale via trading platforms, but excluding exchange between cryptocurrencies. Sale of goods, services and property for cryptocurrency will also be treated as revenues from capital gains.
New taxation rules will also affect crypto miners. If a miner works for him/herself, the tax will be paid on gains from the sale of cryptocurrency mined. If he/she mines on behalf of someone else, or for a business, the value of the remuneration will be taxed.