Russian president signs law on taxation of cryptocurrency
MOSCOW. Nov 29 (Interfax) - Russian President Vladimir Putin has signed the law regulating the taxation of income and expenses from cryptocurrency mining, as well as from its purchase and sale, the official legal information portal says.
Cryptocurrency is recognized as property for tax purposes.
Transactions involving cryptocurrency will not be subject to VAT. Income from cryptocurrency operations will be included in a unified tax base alongside income from securities transactions. Personal income tax will be set at 13% starting in 2025, and the rate will rise to 15% if an individual's annual income exceeds 2.4 million rubles.
The bill introduces a new article (282.3) to the Tax Code, outlining the specific aspects of calculating the tax base for cryptocurrency obtained through mining.
The tax base will be calculated based on the market quotation of the cryptocurrency on the date the income is received. A market quotation refers to the closing price set by a foreign trading organizer, including exchanges, for daily transactions, the bill said. The amendments also define the criteria for foreign crypto exchanges whose quotations miners must consider when calculating the tax on profit, set at 25% from 2025.
A foreign trading organizer, including an exchange, is defined as an entity with daily cryptocurrency trading amounts exceeding 100 billion rubles. Moreover, market quotation data must be published on the exchange's official website for at least the past three years. If transactions for the same cryptocurrency are conducted on multiple foreign exchanges, taxpayers may choose which exchange's market quotation to use.
If transactions for the same cryptocurrency occur at prices denominated in different currencies or in foreign digital assets pegged to foreign currency exchange rates, taxpayers can choose the trading pair whose closing price will be recognized as the market quotation. The closing price of the cryptocurrency must be converted into rubles at the official exchange rate of the Central Bank of Russia on the date the income is recognized.
Revenue (proceeds) from cryptocurrency sales will be determined based on the actual sale price, but not lower than the market quotation reduced by 20%. Income can be reduced by mining-related expenses. For purchased cryptocurrencies, their value is determined by the acquisition price but cannot be above the market quotation increased by 20%.
This article of the law is expected to come into force one month after its official publication but no earlier than the start of the next tax period for the relevant tax.
The law also imposes tax reporting obligations on mining infrastructure operators. These operators must report information to tax authorities about cryptocurrency mining activities by individuals using their infrastructure services.
Reports must be submitted quarterly in electronic form no later than the 25th day of the month following the reported quarter. Failure to meet this deadline will result in a fine of 40,000 rubles. This provision will take effect on January 1, 2025.
The law specifies that income and expenses from cryptocurrency operations, excluding those related to mining, under the experimental legal regime (ELR) for digital innovation will be included in the general tax base. The ELR permits the use of cryptocurrency for cross-border transactions.
The law proposes exempting services of authorized organizations facilitating cryptocurrency transactions under the ELR from taxation.
The law will come into effect on the date of its official publication, with the exception of several provisions.