Russian President Vladimir Putin has signed a federal bill that will introduce taxes on cryptocurrency transactions and officially recognize cryptocurrencies as property.
According to the official document The legislation, published on November 29, imposes a personal income tax of 13% to 15% on cryptocurrency sales and exempts mining activities from value added tax.
It further orders mining infrastructure operators to report details of their services to local authorities, with non-compliance resulting in fines of 40,000 rubles (about $383).
The bill also classifies digital currencies, including those used in foreign trade deals under Russia’s experimental legal crypto regime, as property, giving them legal recognition.
Cryptocurrencies obtained through mining are treated as income in kind, with their value determined based on market rates.
Such income will be taxed on a progressive scale, with rates of 13% for income up to 2.4 million rubles and 15% for income exceeding this threshold. At the same time, mining-related expenses are eligible for tax deductions.
Furthermore, corporate profits from cryptocurrency mining will be subject to the standard corporate tax rate, which will increase to 25% from 2025.
The law also imposes restrictions on tax regimes for organizations and individual entrepreneurs involved in mining or selling cryptocurrency. They may not move to simplified or specialized tax systems, including the single agricultural tax, the patent system, the self-employment tax system or the automated simplified tax system.
On August 8, 2024, President Vladimir Putin signed legislation legalizing cryptocurrency mining in Russia. The law, which will come into effect on November 1, 2024, allows only registered Russian legal entities and individual entrepreneurs to participate in mining activities.
Those with entrepreneurial status can mine Bitcoin with a consumption limit of 6,000 Kw/h per month, while some regions face temporary restrictions due to energy consumption concerns.
Meanwhile, increased regulatory clarity in Russia is driving demand for cryptocurrencies. As reported by crypto.news, traffic to prominent crypto exchanges in the country increased by more than 8% in November.
