Russia has approved draft amendments to a bill on taxing cryptocurrency mining and related transactions, defining new rules for the sector.
What the New Initiative Includes
The Russian government is moving forward with new amendments to its Bitcoin mining legislation, introducing tax rules for crypto mining and transactions. The Ministry of Finance has presented guidelines for taxing income and expenses in the crypto mining sector, outlining tax obligations for operators of mining infrastructure.
Tax Obligations and Exemptions
Under the changes, cryptocurrencies are defined as property for tax purposes. Income from mined tokens will be taxed based on their market value when received. Additionally, crypto miners can deduct related expenses from their income. Crypto transactions will not be subject to value-added tax; instead, income from these operations will be taxed alongside income from securities transactions. The highest personal income tax rate on cryptocurrency earnings is proposed to be set at 15%.
Mining Regulation and Restrictions
Crypto mining infrastructure operators will be required to notify tax authorities about individuals using their facilities for mining, though the exact details operators should disclose about their customers remain unclear. Since November 1, crypto mining in Russia is allowed for registered individual entrepreneurs and organizations only. Those without entrepreneur status may produce Bitcoin via mining within a consumption limit of 6,000 kWh per month. The government has also set temporary mining bans for certain regions, effective December 1 through March 15, 2025, due to electricity deficits.
The amendments to the legislation reflect Russia's efforts to regulate the cryptocurrency sector with a focus on taxation and mining control, expecting significant impacts on market participants.
