There has been a development regarding cryptocurrencies in Russia, and Russian President Vladimir Putin has signed the law on cryptocurrencies.
Accordingly, Putin signed a new law that recognizes digital currencies as property and exempts cryptocurrency mining and sales from Value Added Tax (VAT), and thus it came into force.
Under the law signed by Putin, cryptocurrencies will now officially be considered property and tax regulations on crypto transactions will be reshaped.
This law, which marks a significant change in Russia's approach to digital assets, enables the use of cryptocurrencies, especially in foreign trade.
According to the law, cryptocurrency mining and sales will be exempt from VAT. In addition, transactions within the electronic payment system (EPR), including crypto, will not be subject to tax liabilities.
On the other hand, cryptocurrency mining operators will have to report their services to the tax authorities. Failure to provide this information on time could result in a fine of up to 40,000 rubles.
Under the new law, income from purchases, sales or other transactions involving cryptocurrency will be taxed under a two-tiered system.
Accordingly, a 13% tax will be applied to incomes up to 2.4 million rubles, and a 15% tax will be applied to incomes over 2.4 million rubles.
Additionally, mining revenues will be classified as “income in kind” and these earnings will be subject to a 25% corporate tax as of 2025.
*This is not investment advice.
