Key Points
- The Russian government is progressing with amendments to tax laws impacting cryptocurrency mining and transactions.
- These changes define cryptocurrencies as property for tax purposes and propose a 15% personal income tax rate on crypto earnings.
Russia is pushing ahead with a draft amendment to its legislation on Bitcoin (BTC) mining. The amendment introduces new tax rules for crypto mining, transactions, and related infrastructure. The Ministry of Finance announced these amendments. They provide new guidelines for taxing income and expenses in the crypto mining sector and clarify the tax obligations for operators of mining infrastructure.
According to the proposed changes, cryptocurrencies will be considered property for tax purposes. The market value when received will determine the tax on income from mined tokens. Crypto miners will also have the ability to deduct related expenses from their income.
Taxation and Regulations
The amendments also stipulate that crypto transactions will not incur value-added tax. Instead, income from such operations will be taxed in the same way as income from securities transactions. The highest personal income tax rate on cryptocurrency earnings is suggested to be 15%.
Furthermore, operators of crypto mining infrastructure will need to inform tax authorities about individuals using their facilities for mining. However, the exact information that operators should disclose about their customers is still unclear.
As of November 1, only registered individual entrepreneurs and organizations can conduct crypto mining in Russia. Those without entrepreneur status can produce Bitcoin via mining within a consumption limit of 6,000 Kw/h per month. The Russian government has also implemented temporary mining bans for certain regions from December 1 until March 15, 2025, due to electricity deficits.