Russia Proposes 15% Tax on Crypto Income and Mining Activities

The Russian government has moved forward with a proposal to amend its tax regulations, targeting income and expenses generated from cryptocurrency trading and mining.

The Ministry of Finance supports the draft bill, which aims to bring greater clarity and regulation to the taxation of cryptocurrency-related activities.

Under the new framework, cryptocurrencies will be classified as property for tax purposes. For cryptocurrency miners, the income generated will be taxed based on the market value of the mined assets at the time they are received. However, miners will be allowed to subtract certain operational expenses from their taxable earnings.

In terms of taxation, cryptocurrency trading profits will be subject to the same tax rates as those applied to securities transactions, capped at a personal income tax rate of 15%. Cryptocurrency transactions themselves will be exempt from value-added tax (VAT). Additionally, miners will need to provide detailed reports on the individuals utilizing their mining infrastructure to ensure compliance with the new rules.

The Ministry of Finance emphasized that the proposed tax changes aim to strike a balance between government interests and the business sector, ensuring that cryptocurrency-related income is taxed in a fair and transparent manner.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.