The Russian government has approved draft amendments to regulate the taxation of cryptocurrency transactions and mining. According to the country’s Finance Ministry, the proposed legislation classifies cryptocurrencies as property for tax purposes and introduces new rules for miners and traders, Russian news agency Interfax reported.
Under the amendments, income from mining will be taxed based on its market value at the time of receipt, with miners allowed to deduct operational expenses. Additionally, cryptocurrency transactions will be exempt from value-added tax (VAT), while income from trading will be taxed at rates similar to securities, with a maximum personal income tax rate of 15%.
To ensure compliance, mining operators will need to report information about individuals using their infrastructure. The Finance Ministry emphasised that the measures aim to balance the interests of businesses and the government.
This development follows previous proposals, including taxing miners’ unrealised gains and limiting bitcoin mining for unregistered individuals to a monthly power consumption of 6,000 kilowatt-hours. Russia first introduced a cryptocurrency taxation bill in December 2020, passing its initial reading in 2021.
Credit: TheBlock (Text Excluding Headline)
