Russia Approves Crypto Tax Framework
Russia’s upper house of parliament has passed a government bill that sets out a taxation system for digital currencies. This follows the bill’s initial approval in the lower house, the State Duma, and its final passage in a plenary session on Wednesday.
Under the new law, digital currencies will be classified as property within the Russian Federation Tax Code, including those being used as payment tools under experimental legal frameworks. This means that digital currency mining and sales transactions will be exempt from value-added tax (VAT), providing financial relief for individuals involved in this sector.
Furthermore, services offered by authorized organizations that facilitate transactions under these experimental frameworks will also be exempt from VAT.
One key provision of the law requires mining infrastructure operators to report the personal information of individuals using their systems to tax authorities. Income from digital currency mining will be regarded as taxable income and will be subject to personal income tax.
According to Danil Volkov, a department head at the Russian Ministry of Finance, companies engaged in mining operations will be taxed at the standard corporate income tax rate. Mining income will be taxed based on the asset value on international exchanges.
For most earners, the personal income tax rate will remain at 13%, but will increase to 15% for those earning over 2.4 million rubles annually, starting in 2025.
