The Russian Senate passes a bill exempting VAT on crypto transactions while imposing a 15% income tax

The Russian Senate has passed a bill establishing a tax framework for digital currency, classifying them as assets under the Russian Federal Tax Code. This bill exempts value-added tax (VAT) for mining and selling digital currency transactions, as well as for supporting transaction services within a testing framework. However, income from mining activities will be subject to personal income tax at a rate of 13%, increasing to 15% for annual income exceeding 2.4 million rubles starting in 2025. Mining businesses will be subject to corporate income tax at the standard rate. The tax will be calculated based on the asset value on international exchanges. Additionally, mining infrastructure operators must report users' personal data to the tax authorities. This bill was previously approved by the State Duma and is awaiting President Putin's signature to officially take effect. Concurrently, Russia has also issued a ban on cryptocurrency mining in certain regions during the winter to address power shortages.