On Friday, November 15, the Russian government approved amendments to the mining bill regulating the taxation of cryptocurrency. Digital currencies were recognized as property for tax purposes.
Income in the form of cryptocurrencies obtained as a result of mining will be taken into account at the market value at the time of their receipt. However, they can be reduced by the costs incurred during the mining process.
"As a result of discussions with businesses, a decision was made on the advisability of taxing the financial result of mining, as the most fair reflection of the results of this activity. This approach is aimed at maintaining a balance of interests between business and the state," the press release says.
Transactions with digital currency will not be subject to VAT. Income from transactions with cryptocurrencies will be taken into account in the same tax base as income from transactions with securities.
The maximum personal income tax rate for taxing cryptocurrency will not exceed 15%.
“The operator of the mining infrastructure will be required to report to the tax authorities information about individuals who carry out mining using its infrastructure,” the statement said.
Let us recall that on November 1, the regulation on the creation of a register of miners came into force in the Russian Federation. Basic regulation of cryptocurrency mining in the country was adopted in July. ForkLog analyzed its impact on the industry in a separate article.
Additional amendments spell out the government's powers to restrict mining in certain territories. Earlier, the Russian Ministry of Energy named regions for future bans on cryptocurrency mining.
The Russian Federation has also set a limit on energy consumption for individual miners.