On February 3, the Federal Tax Service (FNS) of Russia launched a new income declaration system for digital asset mining participants. This initiative is regulated by Federal Law No. 259-FZ and aims to ensure transparency and legality in crypto-mining.
FNS and the New Reporting System
The FNS announced that taxpayers involved in crypto mining can declare their mining income through their personal accounts. This aligns with Federal Law No. 259-FZ, setting the legal framework for mining and taxation in the country. Miners must report mined cryptocurrency no later than the 20th of the month in which it was accumulated.
Registration and Taxation of Miners
Under the system, individuals earning up to $23,976 from mining must pay a 13% tax, while those earning more must pay 15%. Miners and legal entities can report mined currencies to the tax authorities if included in the Register of Miners and Operators. This registry is regulated by the FNS and Decree No. 1464, issued by the Russian government on October 31, 2024. It includes individuals and legal entities operating within Russia's legal framework, including pool participants.
Mining Bans in Regions
Last November, the Russian government banned crypto mining in several regions, including parts of Ukraine it had captured. The ban, which took effect from December last year, will remain in place until March 2031. The ban addresses power shortages in these regions.
The introduction of a new system for declaring mining income in Russia is a significant step towards ensuring legality and transparency in the crypto industry. This will allow more effective control over mining and cryptocurrency taxation processes.
