Putin Signs Law Regulating Digital Currency Taxation In Russia

According to BlockBeats, Russian President Vladimir Putin has signed a law regulating the taxation of digital currencies. The new legislation classifies digital currencies as property, including those used for foreign trade payments within the framework of experimental legal regimes in the digital innovation sector. Notably, the mining and sale of digital currencies will not be subject to value-added tax (VAT). Operators of mining infrastructure are required to report to tax authorities when their services are used to issue cryptocurrencies. Failure to submit this information on time may result in a fine of 40,000 rubles. Regarding personal income tax, digital currencies obtained through mining are categorized as in-kind income, a term typically used when payments are made with goods or services instead of money. The value of the acquired currency will be determined based on market quotations, and such income will be taxed at the usual progressive rates, with tax deductions considered for mining expenses. Additionally, income from acquiring, selling, or otherwise circulating digital currencies will be taxed under a two-tier personal income tax rate system. Income up to 2.4 million rubles will be taxed at 13%, while income exceeding this amount will be taxed at 15%. These earnings will be included in the same tax base as income from securities, bank deposits, and other sources. For corporate income tax, digital currency mining will be taxed at the standard rate, which will be 25% starting in 2025.