The Russian government has approved draft amendments to a bill aimed at taxing crypto mining and transactions. Russia is moving forward with a draft amendment to its Bitcoin mining legislation, introducing new tax rules for crypto mining, transactions, and related infrastructure. According to an official report, the amendments, announced by the Ministry of Finance, establish new guidelines for taxing income and expenses in the crypto mining sector, along with outlining the tax obligations for operators of mining infrastructure.

New Tax Guidelines for Crypto Mining

Under the changes, cryptocurrencies are defined as property for tax purposes. Income from mined tokens will be taxed based on their market value when received. Additionally, crypto miners can subtract related expenses from their income, providing a clearer tax structure for those involved in mining activities.

Tax Exemptions and Rates

The amendments also state that crypto transactions will not be subject to value-added tax (VAT). Instead, income from these operations will be taxed alongside income from securities transactions. The highest personal income tax rate on cryptocurrency earnings is proposed to be set at 15%.

Obligations for Mining Infrastructure Operators

Operators of crypto mining infrastructure will be required to notify tax authorities about individuals using their facilities for mining. However, the exact details that operators should disclose about their customers remain unclear.

Regulations on Crypto Mining

Since November 1, crypto mining in Russia is allowed for registered individual entrepreneurs and organizations only. Those without entrepreneur status may produce Bitcoin via mining within a consumption limit of 6,000 kWh per month. The Russian government has also set out temporary mining bans for certain regions, effective from December 1 until March 15, 2025, due to electricity deficits.

“Income from mined tokens will be taxed based on their market value when received.”

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