Putin signed a law on cryptocurrency taxation

Russian President Vladimir Putin signed a law that recognizes the cryptocurrency property and imposes a tax similar to the tax on income from operations with securities.

The personal income tax rate will be 13% with the amount of such income from cryptocurrency to 2.4 million rubles per year and 15% when exceeding the threshold. Mining organizations will be taxed on income tax at a standard rate of 25% since 2025.

Mining infrastructure operators will have to inform tax authorities about users of their services.

Operations related to mining and the sale of digital currencies will not be subject to value added tax (VAT). But residents will have to report on the tax on cryptocurrency transactions if the amount of receipts or write -offs for the year exceeds the amount equivalent to 600 thousand rubles.

The main provisions of the law will enter into force on January 1.

• The bill on the taxation of digital currency was submitted to the State Duma back in 2020, it was developed by the Ministry of Finance and the government. In February 2021, he passed the first reading. In 2022, the authorities promised that they would accept amendments in the spring. But the third reading project was held only in November of this year.
• So far, the tax authorities do not have information about cryptocurrencies opened by companies and citizens and operations on them, and the digital currency itself is not considered property.