Russia to impose 15% tax on cryptocurrency income

Russia on Monday proposed a draft amendment through the Ministry of Finance, proposing a 15% tax on cryptocurrency earnings as part of a broader move to regulate cryptocurrency mining and trading. The proposed changes will reshape the tax framework for cryptocurrency miners, affecting income, expenses and related infrastructure. Revenue from mining output tokens will be taxed at market value when received, and miners can deduct operating expenses, thereby ensuring that tax calculations are balanced. Under the proposed amendments, cryptocurrencies will be classified as property for tax purposes. In addition, the new framework eliminates the value-added tax (VAT) on crypto transactions, and the taxation of income generated from these transactions will be similar to securities transactions. The proposed rules also include obligations for operators of mining infrastructure. These operators will be required to notify tax authorities of individuals using their facilities for mining, but it remains unclear what data they will need to disclose. (Interfax)