Starting from November 1, cryptocurrency mining has been legalized in Russia. After registering in a special register of the Federal Tax Service, companies and individual entrepreneurs can engage in mining. Individuals do not need to register in the register; they can mine within the limit of electricity consumption set at 6,000 kWh per month.

The law establishes that operations with digital currency are not subject to value-added tax (VAT), but miners will pay other taxes: legal entities will pay profit tax, while individuals will pay personal income tax (PIT). At the same time, according to the new law, the tax base for income from mining and buying and selling cryptocurrencies will be calculated differently, explained Denis Polyakov, head of the Digital Economy practice at GMT Legal.

Income from mining is included in the overall taxable base and is taxed at a new progressive rate of 13–22%, while income from trading (from acquisition, sale, and other disposal of digital currency) is subject to inclusion in a separate tax base and is taxed at a rate of 13–15%, the lawyer clarified.