As work on cryptocurrencies continues in Russia, a new tax bill for crypto mining and trading has been approved.
The Federation Council, the upper house of Russia’s parliament, has approved a bill that would tax cryptocurrency transactions and mining, classifying cryptocurrencies as property under the Russian Internal Revenue Code, The Block reported.
This bill exempts cryptocurrency mining and sales from value added tax (VAT).
Under the bill, mining companies will be required to report user data to authorities. In addition, companies’ mining income will be taxed as personal income and will be subject to a 13% tax rate. Starting in 2025, the tax rate will rise to 15% for annual incomes exceeding 2.4 million rubles ($28,800).
The bill, which has passed both Russia's upper and lower houses of parliament, is expected to be signed by President Vladimir Putin before it becomes law.
As is known, cryptocurrencies have been on Russia's agenda lately. With the arrival of winter, it has announced that it will ban cryptocurrency mining in some regions, including the occupied Ukrainian regions.
At this point, Russian authorities stated that they will ban cryptocurrency mining activities in some regions, including the occupied territories of Ukraine, in order to prevent power outages as part of the preparation for the winter season.
*This is not investment advice.