As a seasoned crypto investor with roots deeply entrenched in the frigid Siberian tundra, I’ve seen the crypto landscape of Russia evolve like permafrost thawing under the Arctic sun. The recent greenlighting of draft amendments to tax crypto mining and transactions by the Russian government has me pondering my next move in this digital gold rush.
The Russian government has given the go-ahead for proposed changes to a law that will impose taxes on cryptocurrency mining activities and transactions.
The Russian government is advancing a proposed change to its Bitcoin (BTC) mining regulations, which include fresh tax rules for mining activities, transactions, and related facilities. As reported by Interfax, these amendments, unveiled by the Ministry of Finance, set forth new instructions for calculating income and expenses in the crypto mining industry, as well as detailing the tax responsibilities for managers of mining hardware.
Following the new regulations, cryptocurrencies are classified as assets for taxation purposes. The earnings derived from mining these digital tokens will be taxed according to the market value at the time of receipt. Additionally, crypto miners are allowed to deduct relevant costs from their income, as stated in the report.
In addition, the amendments indicate that crypto transactions won’t incur Value-Added Tax (VAT). Rather, the revenue generated from these operations will be taxed together with income derived from securities trading. Proposedly, the top personal income tax rate for cryptocurrency earnings is set at 15%.
Furthermore, it is proposed that operators of cryptocurrency mining infrastructure must inform tax officials when individuals use these facilities for mining. However, the specific information that operators need to share about their clients has yet to be defined with clarity.
Starting November 1st, only registered individual entrepreneurs and organizations in Russia are authorized to engage in crypto mining. Individuals lacking entrepreneur status can mine Bitcoin under a monthly power consumption limit of 6,000 Kw/h. The Russian government has also imposed temporary bans on mining activities in certain regions, effective from December 1st, 2021 until March 15th, 2025, due to an electricity shortage.
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2024-11-18 14:11