Russia is moving closer to adopting a comprehensive framework for taxing cryptocurrencies after the Russian Federation Council approved the bill on November 27, awaiting President Vladimir Putin’s signature for the law to take effect.
The legislation classifies cryptocurrencies as property and exempts cryptocurrency transactions from VAT.
Under the new law, income from cryptocurrency sales will be subject to a personal income tax of 13% to 15%, while mining operators will be exempt from VAT on mined coins and will be required to report their activities to tax authorities.
The mining tax will be calculated based on the market value of the cryptocurrency at the time of receipt, with fines of up to 40,000 rubles (about $360) for failure to comply with reporting requirements.
The law also recognizes the use of cryptocurrencies in foreign trade agreements within a pilot legal framework, while services of licensed mining infrastructure operators continue to be exempt from taxation within Russia.
These measures aim to regulate the cryptocurrency economy and introduce oversight consistent with the government's tax objectives.
These developments come in conjunction with government plans to limit cryptocurrency mining during the winter to avoid electricity shortages.
Mining in Siberian regions such as Irkutsk and Buryatia is set to be suspended from December to mid-March, with a similar seasonal ban until 2031, as well as a permanent ban in the North Caucasus and some Russian-controlled Ukrainian regions.
