Russia's new crypto tax bill has been approved, and it's essential for miners and traders to understand the implications. The bill classifies crypto as a form of "property" for the first time in Russian law, providing clarity on taxation.¹
*Tax Rates for Miners*
Industrial Bitcoin miners will be required to pay taxes on their revenues. The tax rate will be 13% for miners earning up to 2.4 million rubles (approximately $21,210) per year. Those exceeding this income threshold will face a higher rate of 15%.²
*Exemptions and Reporting Requirements*
Miners are exempt from value-added tax (VAT) on the tokens they mine and sell on crypto exchanges. However, they must report their operations to the Federal Tax Service (FTS). Failure to comply may result in fines of up to 40,000 rubles ($354).
*Impact on the Crypto Market*
The new tax bill is expected to have a significant impact on the Russian crypto market. With clearer regulations and taxation guidelines, the market may attract more investors and miners. Additionally, the recognition of crypto as a form of property may lead to increased adoption and use cases.³
Overall, Russia's new crypto tax bill provides a framework for miners and traders to operate within the country. While there are tax implications, the bill also offers exemptions and clarity on reporting requirements.