As a seasoned researcher with a particular focus on global financial systems and technological advancements, I find the recent legislative developments surrounding cryptocurrencies in Russia to be intriguing. Having followed the evolution of digital currencies for years, it’s fascinating to see a major economy like Russia officially recognizing their existence and introducing taxes on transactions.
As a dedicated crypto investor, I’ve just learned that President Vladimir Putin has enacted a new law at the federal level. This law introduces taxation for cryptocurrency transactions and legally acknowledges these digital assets as property within our nation. It’s an exciting development in the evolving world of blockchain technology!
As a crypto investor, I’ve recently learned that, based on an official document published on November 29th, there will be a personal income tax of 13% to 15% applied to the sale of cryptocurrencies. However, it’s good news for miners as their operations will not incur Value-Added Tax (VAT).
Additionally, it requires mining infrastructure operators to submit details about their operations to local government bodies. Failing to do so may lead to penalties amounting to approximately 40,000 rubles or around $383.
This legislation categorizes digital currencies, even those employed in international trade deals within Russia’s trial cryptocurrency law framework, as forms of property, thereby acknowledging their legal status.
Mined cryptocurrencies are considered as in-kind income, and their worth is evaluated according to the current market prices.
Income earned will be subject to a progressive tax system. This means you’ll pay 13% on earnings up to 2.4 million rubles, and any income above that amount will be taxed at a rate of 15%. Additionally, costs related to mining activities can be claimed as deductions when calculating your tax liability.
Furthermore, companies earning from cryptocurrency mining will have to pay the regular corporate tax at a rate of 25%, effective from 2025 onwards.
The law sets boundaries on the tax structures for businesses and independent entrepreneurs engaged in mining or cryptocurrency trading. Specifically, they are prohibited from utilizing streamlined or specialized tax schemes such as the single agricultural tax, patent system, self-employment tax framework, or automated simplified tax system.
On August 8, 2024, President Vladimir Putin approved a law that makes cryptocurrency mining legal in Russia. This law will take effect on November 1, 2024, allowing only registered Russian businesses and self-employed individuals to engage in mining activities.
Currently, a clearer regulatory landscape in Russia is sparking interest in cryptocurrencies. According to crypto.news, there was an approximately 8% increase in traffic to leading cryptocurrency exchanges within the country during November.
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2024-11-29 16:24