Russia Classifies Cryptocurrency as Property, Implements New Tax Regulations for Mining and Trading

Recently, President Vladimir Putin signed a new law in Russia that classifies cryptocurrency as property. This change allows for its use in certain foreign trade transactions.

The law, signed on a Friday, also exempts the mining and selling of cryptocurrency from value-added tax (VAT). This is a significant move.

Now, any digital currency earned through mining is categorized as “income in kind.” This means it will be taxed at market rates. For personal income, the tax is 13% on earnings up to 2.4 million rubles (about $22,000). If you earn more than that, the rate jumps to 15%. Corporate income tax remains at a standard rate of 25%.

Crypto mining operators must report their clients to tax authorities. If they don’t, they could face a fine of 40,000 rubles (around $370). It’s important to keep everything above board.

Under this new law, miners and traders can no longer apply for certain tax benefits, like the single agricultural tax. This change is noteworthy.

This law follows another one that outlines the rights and responsibilities of crypto mining firms, which took effect on November 1. Non-registered entities now have permission to mine, but there are limits, such as an energy consumption cap. The government can also ban mining in specific areas if necessary.

Additionally, some companies are now authorized to make international payments under this new law, using the Bank of Russia. This opens up new avenues for business.