Russia’s new crypto tax law has brought about a significant shift in the regulation of digital currencies within the country. The legislation, which was recently approved by the Federation Council, classifies digital currencies as property under the Russian Internal Revenue Code. This classification not only exempts digital currency mining and sales transactions from value-added tax (VAT) but also eases financial obligations for participants in the sector.
One of the key provisions of the new law is the requirement for mining infrastructure operators to report data on individuals using their systems to tax authorities. Revenue generated from digital currency mining will be considered taxable income, forming the basis for personal income tax. Businesses involved in mining activities will be subject to the standard corporate income tax rate.
The legislative process for the bill involved multiple readings in the State Duma, approval from the Federation Council, and is now awaiting President Vladimir Putin’s signature to become law. Once endorsed, the legislation will establish a detailed taxation framework for digital currencies in Russia.
This move reflects Russia’s broader initiative to regulate the cryptocurrency market in response to increasing global scrutiny. Mining revenue will be taxed based on asset values on international exchanges, with personal income tax rates for digital currencies remaining at 13% for most earners. From 2025 onwards, the tax rate will increase to 15% for individuals with annual incomes exceeding 2.4 million rubles.
These measures are aimed at promoting transparency, legal clarity, and alignment with national economic goals within the cryptocurrency sector. The goal is to foster controlled growth while also contributing to public revenue. By implementing these regulations, Russia hopes to establish a stable and secure environment for digital currency transactions within its borders.
Overall, the new crypto tax law in Russia signifies a significant step towards formalizing the regulation of digital currencies and ensuring compliance with tax obligations. This move is likely to have a lasting impact on the cryptocurrency market in the country and pave the way for further developments in the sector.