Taxation Issues for Digital Financial Assets

Abstract

The objective of the study is to determine the status of a digital financial asset and the features of its taxation in the Russian Federation and progressive countries. Currently, there are three main taxation models that are used in this area: income tax, corporate income tax, and capital gains tax. The article explores the prospects for introducing the experience of foreign countries in the Russian Federation. The possible changes that may occur in tax regulation are analyzed. The experience of leading countries in the field of legal regulation of the use of digital financial assets and the taxation of cryptocurrency transactions is analyzed. Such an analysis will allow Russia to keep pace with countries with a leading economy and at the same time increase state budget revenue through taxation of cryptocurrency transactions. The study provides an analysis of the conceptual scenarios of digital income taxation and objects of taxation in the process of cryptocurrency creation. The study critically assesses possible options for applying international standards for tax accounting of digital assets. Groups of problematic issues that arise in the tax accounting of digital assets are developed. The prospect of further research is the development of tax accounting methods for each of the established entities for the creation and circulation of digital financial assets in accordance with accounting objects.

Tax havens reexamined: The impact of global digital tax reforms on international taxation

“…Cryptocurrencies and blockchain technology have the potential to further obscure financial transactions and facilitate tax evasion and money laundering. Some tax havens have embraced cryptocurrencies and blockchain technology as part of their efforts to attract digital businesses and investors, offering regulatory certainty and innovative financial services in this rapidly evolving landscape (He, et al, 2022;Shestak, et al, 2021).…”

Regulatory constraints, responsibilities and consultation (CRC) for legal institutionalization of cryptocurrencies in Pakistan

“…Studies also document many repercussions of the lack of regulation such that unregulated crypto wallets can be stolen with no legal recourse (Singh and Shukla, 2022), crypto transactions are not taxed (Dumchikov et al, 2020) and customers are exploited (Zameni and Alam, 2021). Governments should regulate crypto to increase tax revenue Bouoiyour and Selmi (2015); Jumde and Cho (2020), Tskhadadze et al (2022) Source: Created by authors (Shestak et al, 2021). Tikhonova (2020) suggests a balanced approach to promote the crypto market and blockchain innovation globally.…”

Research on poverty reduction effect of digital financial inclusion based on K-LSTM-ecm modeling

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