Putin signed a law on cryptocurrency taxes in Russia

The law recognizes digital currency as property for tax purposes and establishes rules for calculating income and expenses from operations with it, including mining and buying and selling. Mining infrastructure operators must report to tax authorities about miners using their services. For non-compliance with this rule, a fine of 40 thousand rubles is provided.

Income from cryptocurrency transactions is included in a single tax base with income from securities transactions. The tax rate will be 13% for income up to 2.4 million rubles per year and 15% for amounts exceeding this threshold. There are no higher progressive rates for cryptocurrency income.

As explained by the director of the tax policy department of the Ministry of Finance, Danil Volkov, operations related to the extraction and sale of cryptocurrencies, as well as the services of authorized organizations participating in the experimental legal regime, are exempt from VAT. Starting in 2025, mining income will be subject to income tax at a rate of 25%. Income from mining in Russia will be considered income from a source in the country and will be subject to tax in Russia.

The market value of a digital currency for tax purposes is determined based on the quote of a foreign currency if the volume of operations in it exceeds 100 billion rubles per day. If data is available from several exchanges, the taxpayer has the right to choose the appropriate quote. Digital currency sales are valued at the actual price, but not below market value with a 20% markdown.

Crypto miners are prohibited from switching to simplified tax regimes, including the patent system and a special regime for the self-employed. The law enters into force on the date of its publication and its main provisions will enter into force on January 1, 2025.