Russian President Vladimir Putin officially signs bill on digital currency taxation

Russian President Vladimir Putin signed a law regulating the taxation of digital currencies. According to the law, digital currencies are recognized as property. This also applies to currencies used for foreign trade payments "within the framework of the Experimental Legal Regime (EPR) in the field of digital innovations." The mining and sale of digital currencies are not subject to VAT. Operators of mining infrastructure must report to the tax authorities the issuance of cryptocurrencies using their services. Failure to transmit such information on time is punishable by a fine of 40,000 rubles. For personal income tax payment purposes, digital currencies obtained through mining will be classified as income in kind (a term usually used when payment is made with goods or services instead of currency). The value of the currency obtained will be determined based on market quotations. Such income will be taxed at the usual progressive rates, taking into account tax deductions for the amount of mining expenses. At the same time, income from the acquisition, sale or other circulation of digital currencies will be taxed at a two-stage personal income tax rate (13% for income up to 2.4 million rubles and 15% for income exceeding this amount). They will be included in the same tax base as income from trading in securities, bank deposits and other sources. In terms of corporate income tax, digital currency mining will be taxed at the standard rate (25% from 2025).