Russia Approves New Crypto Tax Law as Bitcoin Hits Record Highs
- Russia imposes 13%-15% income tax on crypto sales and mining.
- Mining companies face two-stage taxes and stricter reporting rules.
- Bitcoin hits 11M rubles as Russia tightens cryptocurrency regulations.
Russias Federation Council approves a new crypto taxation law, introducing income taxes on digital currencies and strict rules for miners. This comes as Bitcoins value hits an all-time high against the ruble, recognizes crypto as property and aims to boost tax revenue from the sector.
Russia Approves New Cryptocurrency Taxation Framework
The Federation Council, Russias upper house of Parliament, has approved a law that imposes taxes on cryptocurrency transactions and recognizes digital currencies as property. The Act is awaiting President Putins approval and will come into operation once published.
The new framework sets Personal income tax on cryptocurrencies transactions between 13% to 15%. Corporate miners must register with the Federal Tax Service. However, individual miners can operate unregistered if their electricity consumption does not exceed 6,000 kilowatt-hours per month.
Two-Stage Mining Taxation System Targets Compliance
The law introduces a two-stage taxation process for cryptocurrency mining operations. This is aimed to enhance the revenue collection and market transparency. In the first stage, companies pay taxes when mined cryptocurrency is deposited into their wallets. The tax is calculated using major exchange prices at deposit.
A second tax applies to the sale of cryptocurrency, if its value has increased. However, the sale qualifies for deductible loss if the crypto price drops.
This dual approach also introduces the minimum taxable value set at 80% of the market price to avoid tax evasion. The corporate tax rates for mining companies will increase to 25% in 2025. However, costs such as electricity expenses, equipment and facilities maintenance can lower taxable income. These policies are anticipated to generate 50 billion rubles of annual revenue.
Stricter Reporting Rules and Bitcoins Soaring Value
Operators in the mining sector such as hosting providers and mining pools must submit all the service provision data to tax authorities. Failure to report or meet the set deadlines attracts fines of 40,000 rubles.
This legislation exempts mined cryptocurrencies from value-added taxes. However, it increases the scrutiny on cryptocurrency to fiat transactions to discourage non compliance.
Bitcoins price hit 11 million ruble, setting an all time high against the declining Russian ruble. This surge mirrors global trends with Bitcoin price approaching $100,000 and indicates Russias increased interest in digital currencies. The Russian government aims to generate more revenue and encourage innovation in the cryptocurrency space.
Read more: https://www.tronweekly.com/russia-approves-new-crypto-tax-law-amid-btc-ath/
Text source: TronWeekly
