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Russia approves cryptocurrency taxation framework, two-stage taxation system for miners

Russia approves cryptocurrency taxation framework, two-stage taxation system for miners

CointimeCointime2024/11/13 12:11
By:Cointime

the Russian government's legislative activity committee has advanced a cryptocurrency tax bill on November 11, 2024. The bill defines cryptocurrency as property and sets different tax requirements for individual and corporate miners. Under the new regulations, companies must register with the Federal Tax Service to conduct mining operations legally, while individuals with a monthly electricity usage of less than 6,000 kilowatt-hours do not need to register.

The new framework adopts a two-stage taxation model: the first stage taxes cryptocurrency upon receipt, and the tax base is calculated based on the closing price of the major exchange; the second stage taxes upon sale, and if the sale price is higher than the initial taxable value, additional taxes will be levied. Starting in 2024, individual traders and miners with annual income exceeding 2.4 million rubles will be subject to progressive tax rates ranging from 13% to 22%, and the corporate tax rate will be raised to 25% in 2025.

According to the Industrial Mining Association's estimates, these tax measures could bring in 50 billion rubles (approximately $521 million) in revenue to the budget each year.

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