Income from crypto transactions and mining activities will reportedly be subject to a levy of up to 15%
The Russian Finance Ministry has presented a draft law introducing taxes on crypto transactions and mining activities by individuals, Interfax reported on Tuesday, citing an unnamed source familiar with the matter.
According to the proposed amendments, crypto assets will be legally defined as property. Income will be taxed at a rate of 15% for individuals earning more than 2.4 million rubles ($24,000) per year from crypto activities, and 13% for those earning below the threshold. The rates are expected to take effect next year.
The proposed changes stipulate that income from trading cryptocurrencies will be taxed in a similar way to securities transactions, the news agency noted, and will be exempt from value-added tax.
Under the updated legislation, income derived from cypto mining will reportedly be assessed based on the market value of the virtual currency at the time it was obtained. Moreover, miners will have the opportunity to write off related operational expenses from their taxable income.
The amendments were reportedly drawn up by the Finance Ministry ahead of the second reading of the bill, but the date of the reading has not yet been determined.
Payment for goods and services using cryptocurrency, as well as crypto trading, are currently banned in Russia. There is an exception for special cases of companies that participate in an external experiment overseen by the Bank of Russia. However, purchasing such assets is legal.
The new draft is part of Russia’s efforts to regulate the cryptocurrency industry. In recent months, the authorities have taken steps to curb crypto mining’s energy consumption and ban advertising of cryptocurrencies. Last month, Russia’s tax service suggested a levy on unrealized gains for miners.
