- Russia classifies digital currencies as property under new tax law.
- Mining operations are exempt from VAT, easing financial obligations.
On November 27, 2024, Russia’s Federation Council approved a crucial bill outlining the taxation framework for digital currencies. The legislation follows approval from the State Duma, the lower house of parliament, the day before.
With President Vladimir Putin’s expected signature, the bill will soon become law, officially establishing new rules for crypto taxation in Russia. The new law classifies digital currencies as property under Russia’s Internal Revenue Code. This includes cryptocurrencies used as payment tools within experimental legal regimes.
This classification will exempt cryptocurrency mining and sales from value-added tax (VAT), easing the tax burden for businesses in the sector. Furthermore, services provided by authorized organizations facilitating crypto transactions in these experimental regimes will also be exempt from VAT.
A key provision in the law requires mining infrastructure operators to report the personal data of individuals using their systems. This information will be shared with tax authorities. Additionally, mining revenue will be recognized as taxable income.
Russia’s Crypto Tax Rates and Compliance
Personal income tax rates on crypto sales will remain at 13%, increasing to 15% for individuals earning over 2.4 million rubles annually, starting in 2025. Businesses engaged in mining will be subject to the standard corporate income tax rate.
On the same day, the ruble hit a multiyear low against the U.S. dollar, with one dollar worth 113 rubles. This economic shift highlights the growing importance of cryptocurrencies in Russia’s financial landscape.
Under the new legislation, failure to comply with reporting requirements can result in fines of 40,000 rubles (about $360). As Russia continues to refine its crypto regulations, the government aims to create a transparent and legally sound framework for the industry. By doing so, it seeks to harness the potential of digital currencies while contributing to public revenue.
Highlighted Crypto News Today
Why Did XT Exchange Cease Withdrawals Abruptly?
