Russia Considers 15% Tax on Crypto Earnings

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Russia’s Ministry of Finance yesterday put forth a draft amendment proposing a 15% tax on earnings made from cryptocurrency. The intention is to regulate the activities of mining and trading in cryptocurrency, encompassing a wider effort.

The main changes aim to alter the tax system for cryptocurrency miners, affecting their revenue, costs, and relevant infrastructure. According to the amendment, income derived from mining digital tokens will be taxed based on their market value when received.

Miners will be given the freedom to deduct their operational costs to ensure a fair tax calculation. In addition, cryptocurrencies will be classified as assets for taxation purposes.

Furthermore, the proposed legislation eliminates the value-added tax (VAT) on cryptocurrency transactions, establishing a similar tax treatment to that of securities trading. The new regulations also call for mining infrastructure operators to comply with certain obligations.

They will be required to report to tax authorities about individuals using their facilities for mining activities, but the specific data that needs to be disclosed remains unclear.