Michaela Alvez
The Russian government has approved draft amendments to classify digital currency as taxable property, setting a maximum 15% income tax on cryptocurrency earnings and exempting transactions from value-added tax. The changes aim to regulate crypto mining and trading while balancing the interests of businesses and the state.
According to a news release by Interfax, the income generated from crypto mining will be taxed based on its market value at the time of receipt. However, miners can still deduct any associated expenses, ensuring a fair and balanced tax calculation.
Crypto and VAT
Under the new regulations, cryptocurrency transactions will be exempt from Value Added Tax (VAT). Income obtained from these transactions will be taxed in the same manner as income from securities.
With that being said, the maximum personal income tax rate on cryptocurrency transactions will be limited to 15%.
The draft amendments also stated that those providing mining operations must report information regarding the people using their infrastructure to tax authorities. However, the specifics of the data to be disclosed remain unclear.
Russia Crypto Mining Regulations
On August 8, 2024, Russian President Vladimir Putin enacted a law that transferred the responsibility for overseeing cryptocurrency mining to the Federal Tax Service (FTS). This change enhanced the FTS’ capacity to track and regulate digital transactions.
The FTS now has the ability to access identifiers for all currency sale orders made by users. This will provide tax authorities with comprehensive data on digital currency transactions, including details such as identifier addresses and transaction histories.
Additionally, the new law introduced stricter regulations on where cryptocurrency mining activities can take place. Localized restrictions have been implemented to address power shortages that occurred due to mining.
The new law is expected to allow Russian legal entities and registered individual entrepreneurs to engage in crypto mining as long as they are officially registered with the Ministry of Digital Development.
Individuals not registered as entrepreneurs are also allowed to mine cryptocurrencies, but they will be subject to government-imposed energy consumption limits to prevent private mining from disrupting local power supplies.
Read More
- Google Hit with Startling $2.5 Decillion Fine in Russia
- Rosfinmonitoring’s New Initiative Tightens Oversight on Crypto Trading Platforms in Russia
- Can’t Pay Taxes? South Korea City Will Sell Your Crypto to Settle Debts
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
