PANews reported on November 28, according to Bitcoin.com, that on Wednesday, the Russian Federation Council approved a government-initiated bill outlining the tax framework for digital currencies. The day before, the bill had received preliminary approval in the State Duma (lower house) and was finally passed in Wednesday's plenary session. The new law categorizes digital currency (including digital currencies used as payment tools under an experimental legal framework) as property according to the Russian Federal Tax Code. This classification exempts digital currency mining and sales transactions from value-added tax (VAT), reducing the financial burden on participants in this sector. Additionally, services provided by authorized organizations facilitating these transactions under the experimental framework will also be exempt from taxes.
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 form the basis for personal income tax. According to Danil Volkov, head of the relevant department at the Russian Ministry of Finance, businesses engaged in mining activities will be taxed at the standard corporate income tax rate. The law stipulates that mining income will be taxed based on the asset value on international exchanges. For most digital currency earners, the personal income tax rate will remain at 13%, and starting from 2025, the rate for those with annual incomes exceeding 2.4 million rubles will increase to 15%.
During the legislative process, the bill must undergo multiple reviews in the State Duma, gain approval from the Federation Council, and receive the president's signature before it can become law. With the expected support from President Putin, this legislation will officially establish a detailed tax framework for digital currency in Russia.