Source: cryptoslate
Compiled by: Blockchain Knight
Russia’s Federation Council approved a comprehensive revision of the country’s tax code, formally establishing a tax framework for digital assets such as BTC.
The bill, passed on November 27 local time, is a key step for the country to regulate the rapidly growing Crypto industry while ensuring compliance with tax laws.
The new law, titled (On Amendments to Parts I and II of the Tax Code of the Russian Federation and to Certain Legislative Acts of the Russian Federation), was proposed by Alexander Shenderiuk-Zhidkov, deputy chairman of the Federation Council’s Committee on Budget and Financial Markets.
The amendment defines digital assets as tax property, providing legal clarity that is consistent with Russia’s broader regulatory objectives. Under the updated tax code, income from Crypto asset transactions will be taxed under the progressive personal income tax system.
Those with incomes above a certain threshold will be taxed at 13%, while those with higher incomes will be taxed at 15%. This structure is designed to balance government revenue with fairness for individuals and businesses involved in digital asset transactions.
In addition, mining industry operators must report detailed information on their activities to local tax authorities, a move aimed at increasing transparency and addressing potential regulatory loopholes in the industry.
These include disclosing mining activities carried out on behalf of clients and addressing long-standing concerns about regulatory gaps and potential tax evasion in the industry.
The legislation exempts certain activities in the crypto industry from value added tax (VAT), including transactions related to mining and the sale of crypto assets, distinguishing them from other taxable economic activities.
This regulation is seen as a significant incentive for Crypto-related businesses operating in Russia.
Russia has stepped up its efforts to regulate digital assets amid global discussions on digital asset regulation. The Russian government has also introduced measures to restrict mining activities in energy-poor areas to ensure that they do not put pressure on the national power grid.
Analysts estimate that the new tax framework could generate up to 200 billion rubles (about $2 billion) in revenue for the state each year, strengthening public finances while supporting the digital economy.
Critics worry the bill could create enforcement challenges, particularly when it comes to monitoring decentralized finance activity.
However, supporters argue that the bill strikes a necessary balance between promoting innovation and maintaining fiscal responsibility.
The amendments are part of a broader strategy to integrate digital assets into Russia’s financial system while addressing the risks associated with unregulated markets.
