Russia's law on taxing digital currencies not only marks an important step forward in Russia's digital currency regulation, but also reflects the government's deep understanding and active embrace of the emerging digital economy.
According to the clear provisions of the new law, in the specific provisions of the law, the government grants special tax incentives for the mining and sale of digital currencies - these activities are not subject to value-added tax. This encourages the healthy development of the domestic digital currency mining industry and also reduces the burden on related companies. However, in order to ensure the fairness and transparency of the tax system, operators of mining infrastructure are required to regularly report to the tax authorities on the use of their services to issue cryptocurrencies.
In terms of personal income tax, the new law provides detailed classifications and regulations for cryptocurrencies obtained through mining. These cryptocurrencies are classified as in-kind income, a term typically used to describe payments made in goods or services rather than in currency. To accurately calculate the value of the income, the law requires that it be determined based on market quotes.
On this basis, such income will be taxed at the usual progressive tax rates in Russia, while also considering the actual costs incurred during the mining process. The law also allows for tax deductions on the corresponding amounts to reflect the reasonableness and fairness of the tax policy.
Additionally, for the acquisition, sale, or other circulation income from cryptocurrencies, the new law sets a two-tiered personal income tax rate.
At the same time, ensure that the income from cryptocurrency transactions is treated the same as income from securities, bank deposits, and other sources for tax purposes, thereby maintaining the unity and fairness of the tax system.
With the signing and coming into effect of this law, Russia has taken a solid step in the field of cryptocurrency taxation. This law not only provides legal protection for the legitimate status of cryptocurrencies but also offers strong policy support for the healthy development of related industries. In the future, as the cryptocurrency market continues to develop and improve, we have reason to believe that Russia will achieve even more significant accomplishments in this field.