According to TechFlow news on November 28, as reported by Bitcoin.com, the Federation Council of Russia's upper house of parliament approved a government-initiated bill outlining the tax framework for digital currencies on Wednesday. This legislation passed during a plenary session after being approved the day before in the lower house, the State Duma.
The new law classifies digital currencies (including currencies used as payment instruments under an experimental legal framework) as property under Russian domestic tax law. This classification exempts digital currency mining and sales transactions from value-added tax (VAT), alleviating the financial obligations of participants in the industry. Additionally, services provided by authorized organizations facilitating transactions under these experimental frameworks will also be tax-exempt.
An important regulation requires mining infrastructure operators to report the personal data of individuals using their systems to tax authorities. Income from digital currency mining will be treated as taxable income, forming the basis for personal income tax. Danil Volkov, head of the Ministry of Finance, stated that businesses engaged in mining activities must pay taxes at the standard corporate income tax rate.