Russia Approves Bill Taxing Cryptocurrency Transactions - Coin Bulletin

The Federation Council of the Russian Federation (the upper house of parliament) has approved a bill that taxes cryptocurrency transactions and mining activities.

This regulation aims to exempt cryptocurrency transactions from Value Added Tax (VAT). The bill now only awaits the signature of Russian President Vladimir Putin to come into effect.

The Federation Council noted in its statement that this bill contains regulations that define cryptocurrencies as “property.” This law, previously approved by the Russian State Duma (lower house), establishes a framework for taxing crypto transactions.

New tax system

According to the design:

• Crypto transactions will be exempt from Value Added Tax (VAT).
• Income from crypto trading will be subject to tax rates applied to securities transactions. In this context, the personal income tax rate is determined as a maximum of 15 percent.
• Crypto mining revenues will be subject to taxation based on the market value at the time of earning

In addition, crypto mining infrastructure operators will be required to report customer information to tax authorities.