The Russian government has approved proposed changes to the bill on taxing income and expenses related to the mining and trading of digital currency, according to a report from the Finance Ministry.
This would classify digital currency as a type of property for tax purposes. Income from digital currency mining will be calculated based on its market value, with the option to deduct mining expenses.
Transactions with digital currency will not be subject to value-added tax, and income from these transactions will be considered in the same tax base as income from securities.
As a result of discussions with businesses, the government determined that taxing the financial result from mining is the most fair approach for both businesses and the state. The bill was submitted to parliament in December 2020 and passed its first reading in 2021.
Operators of mining infrastructure will also be required to report information about individuals utilizing their infrastructure for mining to the tax authorities.
