Russian President Vladimir Putin has signed a landmark law regulating taxes on digital assets, officially recognizing cryptocurrencies as property.
Recognition of Digital Assets and VAT Exemption
The new law introduces pivotal changes to the treatment of digital assets. Cryptocurrencies are now classified as property, enabling their use in international trade under an experimental legal regime (EPR) for digital innovation. Mining and selling cryptocurrencies are exempt from value-added tax (VAT). Mining operators must disclose information about their clients to tax authorities, with non-compliance resulting in fines of 40,000 rubles.
Taxation on Mining and Crypto Transactions
Cryptocurrencies earned through mining are classified as in-kind income, valued at market rates, and taxed progressively. Mining expenses are eligible for deductions. Profits from buying, selling, or transacting with digital assets are taxed on a two-tier scale: 13% for income below 2.4 million rubles, and 15% for income exceeding this threshold. These earnings are integrated into the same tax base as securities trading, bank deposits, and other income sources.
Restrictions on Certain Tax Regimes
The new law imposes limitations on specific tax regimes for crypto activities. Organizations and individuals involved in mining or crypto sales cannot switch to agricultural tax regimes or simplified taxation systems. Patent systems and self-employment tax regimes are not applicable to crypto mining or transactions.
Russia is taking a step towards the legalization of cryptocurrencies, recognizing them as part of the official economy and expanding their use in international trade. The new law is set to mark a significant landmark for the development of the digital assets industry in the country.
