PANews reported on November 28 that according to Bitcoin.com, on Wednesday, the upper house of the Russian parliament approved a government-initiated bill outlining a tax framework for digital currencies. The bill had been preliminarily approved by the State Duma (lower house) the day before and was finally passed at a plenary session on Wednesday. The new law classifies digital currencies (including digital currencies used as payment instruments under an experimental legal framework) as property in accordance with the Russian Federation Tax Code. This classification exempts digital currency mining and sales transactions from value-added tax (VAT), reducing the financial burden on participants in this field. In addition, services provided by authorized organizations that facilitate transactions under these experimental frameworks will also be tax-exempt.
An important provision requires mining infrastructure operators to report personal data on the use of their systems to the tax authorities. Income from cryptocurrency mining will be considered taxable income and form the basis for personal income tax. According to Danil Volkov, head of the relevant department of the Russian Ministry of Finance, companies engaged in mining activities will be taxed at standard corporate income tax rates. The law stipulates that mining income will be taxed based on the value of assets on international exchanges. For most cryptocurrency earners, the personal income tax rate will remain at 13%, and from 2025, the rate will be increased to 15% for those with annual income exceeding 2.4 million rubles.
During the legislative process, the bill must be reviewed several times in the State Duma, approved by the Federation Council, and signed by the President before it can become law. With President Putin’s expected support, the legislation will formally establish a detailed tax framework for digital currencies in Russia.
