Key Takeaways
- Putin signed a law recognizing digital assets as property and introducing new tax frameworks for crypto mining.
- Crypto mining is exempted from VAT, but operators must report clients to tax authorities or face fines.
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Russian President Vladimir Putin has signed a new law that officially recognizes digital currencies as a form of property in foreign trade settlements under an experimental legal regime (ELR). Under the regulations, crypto mining and sales are not subject to value-added tax (VAT), TASS reported Friday.Crypto transactions facilitated within the ELR are also tax-free, the report noted. Yet, mining facility operators are required to report to the tax authorities who use their services. Those who fail to submit the information on time face a fine of 40,000 rubles.Income from mining crypto will be classified as “income in kind” and taxed at the market value, with deductions allowed for mining expenses. Meanwhile, income from acquiring, selling, or trading crypto will follow a two-tier personal tax structure. The applicable tax rates are set at 13% for income up to 2.4 million rubles and at 15% for amounts exceeding that threshold.For corporate entities, crypto mining profits will be subject to the standard corporate tax rate of 25% starting in 2025.The legislation bars crypto miners and traders from accessing several preferential tax regimes, including simplified taxation systems, agricultural tax benefits, and self-employed status. They cannot utilize the patent system or automated simplified taxation.The law will enter into force on the day of its official publication, with the exception of provisions for which other terms are established, according to the published document, which notes that certain transitional provisions are included.var rocket_beacon_data = {“ajax_url”:”https://cryptobriefing.com/wp-admin/admin-ajax.php”,”nonce”:”aa200cf01d”,”url”:”https://cryptobriefing.com/digital-currency-legislation-russia”,”is_mobile”:false,”width_threshold”:1600,”height_threshold”:700,”delay”:500,”debug”:null,”status”:{“atf”:true},”elements”:”img, video, picture, p, main, div, li, svg, section, header, span”}The move comes after Putin signed a law that defines and advances crypto mining regulations in August. The law allows only registered entities to perform large-scale operations.This is a developing story.
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