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