Russian President Vladimir Putin has signed a law regulating the taxation of digital currencies.
According to the law, digital currencies are recognized as property. This also applies to currencies used for foreign trade payments within the framework of the 'experimental legal regime in the field of digital innovation' (EPR). The mining and sale of digital currencies are exempt from value-added tax. Operators of mining infrastructure must report to the tax authorities on the issuance of cryptocurrency using their services. Failing to provide such information on time may result in a fine of 40,000 rubles. In terms of personal income tax, digital currencies obtained through mining will be classified as in-kind income (a term typically used when payment is made with goods or services rather than currency). The value of the income will be determined based on market quotes. Such income will be taxed at the usual progressive tax rates, taking into account tax deductions for the amount of mining costs. At the same time, the acquisition, sale, or other circulation gains of digital currencies will be taxed at a two-tier personal income tax rate (13% for income up to 2.4 million rubles and 15% for income exceeding this amount). They will be included in the same tax base as income from transactions with securities, bank deposits, and other sources. Regarding corporate income tax, digital currency mining will be taxed at the standard rate (25% starting in 2025).