The Russian government has approved proposed changes to a bill that would tax income and expenses from cryptocurrency transactions and mining, according to a report by Russian news agency Interfax.
Russia Proposes 15% Tax on Crypto Income from Trading and Mining
The draft legislation, supported by the country's Ministry of Finance, aims to clarify and regulate the taxation of crypto activities.
Under the new changes, cryptocurrencies will be treated as property for tax purposes.
Income from mining activities will be taxed according to the market value of the mined assets at the time of receipt. However, miners will be allowed to deduct expenses incurred during mining activities from their taxable income.
Tax Rates and Exemptions
Crypto trading income will be taxed at the same rates applied to securities transactions, with a maximum personal income tax rate of 15%.
Cryptocurrency transactions will be exempt from value added tax (VAT).
Miners will be required to report detailed information about people using their infrastructure to ensure compliance.
The Ministry of Finance explained that the proposed tax framework is designed to balance the interests of businesses and the government while ensuring that crypto-sourced income is taxed fairly.
*This is not investment advice.
