Federation Council approves law integrating digital ruble into Russia's tax system

MOSCOW. Dec 13 (Interfax) - The Federation Council or upper house of Russia's parliament has approved a law that prescribes provisions in the Tax Code relating to the collection of taxes and the general integration of the Central Bank's digital ruble into the fiscal system.

The Tax Code introduces the concept of a "digital ruble account," an account opened by the operator of the digital ruble platform on the basis of an agreement. The article on the collection of tax debts using funds specifies the possibility of doing this using digital rubles in the accounts of a tax agent, an organization or an individual entrepreneur. The procedure for collecting debts from the accounts of individuals is prescribed. Thus, funds from the digital ruble account are collected first, along with funds in bank accounts.

The procedure for suspending transactions on digital accounts is prescribed; it is valid from the moment the bank, the operator of the digital ruble platform receives a decision from the tax authority to suspend these transactions.

As part of tax control, the operator of the digital ruble platform will be required to report to the tax authorities information about the opening or closing of a digital ruble account by both individuals and entrepreneurs.

Funds in digital ruble accounts are entered into the chapters of the Tax Code on the procedure for recognizing the income and expenses of taxpayers.

The law will come into force on January 1, 2025.

The digital ruble is a digital form of the Russian national currency, which the Bank of Russia plans to issue in addition to existing forms of money. As a result, the ruble will have three forms: cash, non-cash and digital. They are all equivalent: one cash ruble is equal to one non-cash ruble, as well as one digital ruble. The implementation model of the Central Bank is a retail one, where clients, individuals and legal entities, through banks and the Federal Treasury, can open digital wallets on the Central Bank platform.