Russia’s upper house of parliament has officially approved a government-initiated bill that outlines a comprehensive tax framework for digital currencies. This development follows the bill's initial approval in the State Duma, the lower house, and its successful passage during a plenary session on Wednesday.
The new legislation categorizes digital currencies, including those utilized as payment tools within experimental legal frameworks, as property under the Russian Federation Tax Code. This classification brings significant tax benefits, exempting digital currency mining and sales transactions from value-added tax (VAT), which alleviates the financial burden on stakeholders in this expanding sector.
Moreover, services rendered by authorized organizations facilitating transactions under these experimental frameworks will also enjoy VAT exemptions. A noteworthy provision of the law mandates that mining infrastructure operators must report the personal data of individuals utilizing their systems to the tax authorities.
Income generated from digital currency mining will be classified as taxable income, forming the basis for personal income tax obligations. Danil Volkov, head of a pertinent department at the Russian Ministry of Finance, mentioned that enterprises involved in mining activities will face taxation at the standard corporate income tax rate.
The legislation indicates that mining income will be taxed based on the asset value as reflected on international exchanges. For the majority of digital currency earners, the personal income tax rate is set to remain at 13%, with an increase to 15% for annual incomes surpassing 2.4 million rubles beginning in 2025.
The legislative process saw the bill undergo multiple readings in the State Duma, receive the Federation Council's approval, all in anticipation of the president’s signature to finalize its enactment into law. With apparent backing from President Putin, this legislation aims to formally establish a robust and comprehensive tax framework for digital currencies within Russia..