The Russian government is jumping on the crypto taxation bandwagon just as Bitcoin reaches new heights against the ruble.
New tax rules
On November 27, the Federation Council, which is the upper house of Russia’s parliament, gave the green light to a federal bill that introduces new taxes on cryptocurrency transactions, and this legislation recognizes digital currencies as property and imposes a personal income tax of 13% to 15% on crypto sales.
And here’s a little good news for miners, they’ll be exempt from value-added tax on mined coins.
This bill has made its way through three readings in the State Duma before getting the thumbs up from the Federation Council, and now, it just needs President Vladimir Putin’s signature to become law. Once signed, it will take effect as soon as it’s officially published.
Reporting requirements for miners
Under this new framework, digital currencies, including those used in foreign trade agreements within Russia’s experimental legal crypto regime, will be recognized as property.
For tax purposes, operators of Russia’s mining infrastructure will be required to report their activities to local authorities.
And if they fail to comply? They could face fines of 40,000 rubles, which is about $360.
But don’t worry too much if you’re an authorized mining operator, your services won’t be taxed within Russian territory.
Bitcoin’s growth against the ruble
Bitcoin is trading at all-time highs against the ruble, not just against the dollar.
On November 27, Bitcoin hit around 11 million rubles, but this surge is partly due to Bitcoin’s global rise, with prices nearing $100,000, combined with the ruble’s decline against the U.S. dollar.
On that same day, the exchange rate for the U.S. dollar reached a multiyear high of 113 rubles per dollar, a level last seen in March 2022.
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