The Federation Council of the Russian Parliament approved a government-initiated bill on Wednesday that outlines the tax framework for digital currencies. This legislation was passed in a plenary session after being approved the day before in the lower house, the State Duma. The new law classifies digital currencies (including those used as payment tools under an experimental legal framework) as property under Russian domestic tax law. This classification exempts transactions involving the mining and sale of digital currencies from value-added tax (VAT), alleviating the financial obligations of industry participants. Additionally, services provided by authorized organizations that facilitate transactions within these experimental frameworks will also be tax-exempt. An important provision requires mining infrastructure operators to report the personal data of individuals using their systems to tax authorities. Income from digital currency mining will be considered taxable income and will form the basis for personal income tax. Danil Volkov, head of the Ministry of Finance's department, stated that businesses engaged in mining activities must pay taxes at the standard corporate income tax rate. (Bitcoin.com)