Tax Proposal on Income
Russia is taking steps to regulate the burgeoning cryptocurrency sector by proposing a 15% tax rate applicable to income from cryptocurrency transactions. This draft is presented by the Russian Ministry of Finance to provide a clearer legal framework for taxing miners and cryptocurrency transactions.Mining and Proposed Changes
According to the proposed changes, individuals earning cryptocurrency through mining will be taxed based on the market value of the tokens when received. They may also deduct costs related to mining operations, which will help balance the tax calculations.Taxation and New Regulations
Besides eliminating VAT on cryptocurrency transactions, cryptocurrencies will be treated as assets for tax purposes, and income from these transactions will be taxed similarly to securities. This not only simplifies the taxation process but also facilitates the participation of entities in this sector. The draft also introduces new regulations for cryptocurrency mining operators, requiring them to inform tax authorities about individuals using their facilities for mining.Regulations for Miners
To address the energy issue, as of November 1, only registered miners will be allowed to operate legally. Individual miners will be limited to electricity consumption of 6,000 kWh per month. Notably, to tackle electricity shortages, temporary mining bans will be enforced from December 1, 2024, to March 15, 2025, in certain regions.