- Russia Finance Ministry has approved draft amendments to tax crypto as property, taxing mining income based on market value at receipt.
- The amendments exempt crypto transactions from VAT and cap personal income tax on trading at 15%, introducing stricter compliance measures for miners.
The Russian government has approved draft amendments to its cryptocurrency taxation bill, introducing a framework to regulate income and expenditures from crypto transactions and mining. According to the Russian news agency Interfax, the Finance Ministry outlined key provisions in the proposed legislation aimed at balancing the interests of businesses and the government.
Under the amendments, cryptocurrencies will be classified as property for tax purposes. Income generated from mining activities will be taxed based on the market value of the mined cryptocurrency at the time of receipt. However, miners will be permitted to deduct expenses incurred during mining operations from their taxable income.
Additionally, the legislation proposes an exemption from value-added tax (VAT) for crypto transactions. Income from trading cryptocurrencies will be taxed at the same rates applied to securities transactions, with a maximum personal income tax rate of 15%.
To ensure compliance, mining operators will be required to report information about individuals using their infrastructure. This measure aims to enhance transparency and facilitate accurate tax collection.
The Finance Ministry emphasized that the taxation framework seeks to strike a balance between fostering business growth and ensuring the government’s financial interests are met.
The move follows the introduction of the original cryptocurrency taxation bill in December 2020, which passed its first reading in 2021. Recent developments have also seen the Federal Tax Service propose taxing miners’ unrealized gains. Furthermore, earlier this month, the government imposed a limit on unregistered individuals mining Bitcoin, capping monthly power consumption for such activities at 6,000 kilowatt-hours.
