Russia’s proposed private member’s bill aims to amend the Tax Code to facilitate the integration of the digital ruble by introducing “digital ruble wallets” and exempting related activities from VAT.
- Russia plans to incorporate its Central Bank Digital Currency (CBDC), the digital ruble, into the country’s tax system by the end of this year.
- A bill to amend the Tax Code has been approved by the State Duma’s Committee on Budgets and Taxes.
- If approved in the Duma, and after receiving presidential approval, the bill could come into effect as early as January 1, 2024
Russia is planning to integrate its Central Bank Digital Currency (CBDC), known as the digital ruble, into its tax system by the end of this year.
A private member’s bill has been approved by the State Duma’s Committee on Budgets and Taxes, which seeks to amend the Tax Code to allow tax bodies to integrate the digital ruble into the country’s system of tax regulation and control.
JUST IN: According to Central Bank, 🇷🇺 Russians will be able to use the digital ruble in everyday payments in 2025.
— Coingraph | News (@CoingraphNews) September 19, 2023
About the Amendment
The amendment will introduce the concept of “digital ruble wallets” into the Tax Code and exempt operations related to the opening and maintenance of these wallets from VAT.
The draft law will also require parties to keep records of transactions and income in digital ruble wallets, as well as CBDC-related expenses.
In addition, the judiciary will be authorized to issue foreclosure orders on digital ruble wallets in bankruptcy and similar cases.
The bill, brought forward by lawmakers Anatoly Aksakov and Olga Anufriyeva, along with Senator Nikolai Zhuravlev, has been approved by the committee.
Anatoly Aksakov, the chief architect of Russia’s crypto legislation and the head of the Duma’s Financial Markets Committee, has previously highlighted the cross-border potential of CBDCs.
Olga Anufriyeva is a former Deputy Minister of Taxes and Duties, while Nikolai Zhuravlev is the former CEO of Sovcombank, a major Russian bank.
Drafting of CBDC-Tax Laws Underway
The bill will now be submitted before the Duma on September 20 for its first reading. If approved, it will proceed to a second reading.
Following the necessary approvals, including presidential approval, the bill could come into effect on January 1, 2024, or even earlier.
The Central Bank clarified this week that its digital ruble project is entirely separate from efforts to launch a biometrics-powered identification platform. The CBDC pilot program began in mid-August across 11 cities in Russia.