The Russian Parliament’s Federation Council passed a bill on Wednesday that was proposed by the government and outlines the taxation rules for digital currencies. This legislation was approved during a plenary session, following its approval by the lower house, the State Duma, the previous day.
Under the new law, digital currencies (including those used as experimental payment tools) are classified as property under Russian tax law. This means that digital currency mining and sales transactions will be exempt from value-added tax (VAT), reducing the financial obligations of those involved in the industry.
Furthermore, services offered by authorized organizations that facilitate transactions within these experimental regimes will also be exempt from taxes. One significant provision of the law requires operators of mining infrastructure to report the personal information of individuals using their systems to tax authorities. Income from digital currency mining will be considered taxable income and will be subject to personal income tax.
According to Danil Volkov, the head of the Russian Ministry of Finance department, businesses engaged in mining activities will be required to pay taxes at the standard corporate income tax rate.
