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crypto.news 2024-11-29 13:15:13

Russia officially recognizes crypto as property with new tax law

Russian President Vladimir Putin has signed into law a federal bill introducing taxes on cryptocurrency transactions and officially recognizing cryptocurrencies as property. According to the official document published on Nov. 29, the legislation imposes a personal income tax of 13%–15% on cryptocurrency sales and exempts mining operations from value-added tax. Further, it mandates mining infrastructure operators to report details of their services to local authorities, with non-compliance resulting in fines of 40,000 rubles (approximately $383). The bill also classifies digital currencies, including those used in foreign trade agreements under Russia’s experimental legal crypto regime, as property, granting them legal recognition. Cryptocurrency obtained through mining will be treated as income in kind, with its value determined based on market rates. Such income will be taxed under a progressive scale, with rates of 13% for income up to 2.4 million rubles and 15% for income exceeding this threshold. At the same time, mining-related expenses will qualify for tax deductions. Additionally, corporate profits from cryptocurrency mining will be subject to the standard corporate tax rate, which is set to increase to 25% starting in 2025. You might also like: Russia sees 8% rise in crypto exchange traffic as Bitcoin price climbs, telecom giant says The law also imposes limits on tax regimes for organizations and individual entrepreneurs involved in mining or cryptocurrency sales. They are not allowed to switch to simplified or specialized taxation systems, including the single agricultural tax, the patent system, the self-employed taxation framework, or the automated simplified taxation system. On Aug. 8, 2024, President Vladimir Putin signed legislation legalizing cryptocurrency mining in Russia . The law, effective Nov. 1, 2024, permits only registered Russian legal entities and individual entrepreneurs to participate in mining activities. Those with entrepreneur status are able to mine Bitcoin with a consumption limit of 6,000 Kw/h per month, while some regions face temporary restrictions due to energy consumption concerns. Meanwhile, increased regulatory clarity in Russia is driving demand for cryptocurrencies. As reported by crypto.news, traffic towards prominent crypto exchanges in the nation surged over 8% in November. Read more: Russian ministry urges 2-year transition period for CBDC adoption over infra concerns: report

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