Russian President Vladimir Putin has enacted a law that establishes a regulatory framework for the taxation of digital currencies. This new legislation redefines digital currencies as property, encompassing those utilized in foreign trade transactions within the context of experimental legal regimes related to digital innovations.
A significant highlight of the law is the exemption of mining and sale of digital currencies from value-added tax (VAT).Mining infrastructure operators must report to tax authorities whenever their services contribute to the issuance of cryptocurrencies. Non-compliance with the timely submission of this information could lead to penalties amounting to 40,000 rubles.
When it comes to personal income tax, digital currencies earned through mining are classified as in-kind income, reflecting payments made in goods or services rather than cash. The valuation of the acquired digital currencies will be guided by market quotations, and this income will adhere to standard progressive tax rates, with deductions available for mining expenses.Furthermore, income obtained from the acquisition, sale, or general circulation of digital currencies will fall under a dual-tier personal income tax rate structure.
Earnings up to 2.4 million rubles are subjected to a 13% tax, while any income exceeding this threshold will incur a 15% tax. These earnings will contribute to a unified tax base similar to that of income derived from securities, bank deposits, and other financial sources. On the corporate side, the standard corporate income tax rate for digital currency mining operations will be set at 25%, effective from 2025..