- Russia has passed a new tax legislation aimed at crypto-related activities, including mining and selling. The new tax regime considers the digital asset class as personal property and establishes different tax requirements for individuals and companies.
- The law requires mining firms to register with the Federal Tax Service. However, individual miners don't need to register with the agency if their crypto-mining setup consumes less than 6,000KW of energy each month.
- The framework has a two-stage taxation model, where an income tax is charged on individuals receiving cryptocurrencies, calculated based on the closing price of the token, whereas an additional tax is applied to the assets while selling them on exchanges if its selling price exceeds the initial taxable value.
- Individual traders and miners with an annual income exceeding 24,000 will be taxed at a rate between 13 and 22, while mining companies will be charged a 25 tax from 2025 onwards.
On November 11, the Russian Government Commission on Legislative Activities advanced a bill to tax various cryptocurrency operations through corporate profit tax and personal income tax systems. The bill defines crypto assets as property and follows the country's new mining regulations by establishing different tax requirements for individual and corporate miners.
Russia Introduces New Crypto Tax Framework That Recognizes The Asset Class As Personal PropertyThe legislation, first drafted in 2020 but delayed until now, requires mining firms to register with the Federal Tax Service before commencing operations within the Russian Federation. Meanwhile, individual crypto miners can mine without registration if their operations use under 6,000 kilowatt-hours of energy each month, which is about six times the average that a Russian household consumes.
The framework adopts a two-stage taxation model personal income tax for individuals and corporate profit tax for businesses. In the first stage, crypto users are taxed when they receive cryptocurrencies, with the tax rate calculated based on the closing price of the particular asset on major trading platforms.
The second stage takes effect upon selling crypto tokens, with additional taxes applied if the sale price exceeds the initial taxable value. Bear in mind that token price drops qualify as deductible losses. Starting today, individual traders and miners with an annual income exceeding 2.4 million rubles 24,194 will be taxed at a progressive rate of between 13 and 22, while for corporations, this rate will increase to 25 from 2025 onwards.
