The Russian Ministry of Finance has approved draft amendments to tax cryptocurrency transactions and mining revenues, according to official reports. Key highlights include:
- VAT exemption for cryptocurrency transactions
- Cryptocurrency trading income to be merged with securities income under the same tax base
- Maximum personal income tax rate capped at 15%—significantly lower than rates in Japan (40%) and Italy
Taxation Framework: 15% Cap on Cryptocurrency Income
Under the revised draft:
- Legal Status: Cryptocurrencies are classified as property
- Mining Revenues: Calculated at market value, minus deductible operational expenses
- Tax Base Alignment: Crypto trading profits treated identically to securities income
- Compliance Requirement: Mining operators must submit user data reports
👉 How Russia's crypto tax compares globally
The bill originated in December 2020 (No.1065710-7) and passed its first parliamentary reading in 2021. The Finance Ministry stated:
"After consultations with industry, taxing mining operations' financial performance represents the fairest approach. This balances corporate and national interests."
Two-Phase Taxation Model by FTS
Earlier, the Federal Tax Service (FTS) implemented a dual-phase system for mining:
- Phase 1: Tax accrues when crypto is transferred to a registered address ("prepayment for mined assets")
- Phase 2: Transaction-based taxation—profits taxed if value increases; losses deductible if value declines
Alexey Katyaev of FTS emphasized:
"Companies pay standard income tax; individuals pay personal income tax. No special regime is necessary."
Key Exemptions Maintained:
- No VAT on crypto transactions
- Continued identity disclosure for mining personnel
FAQs
Q: How does Russia's 15% crypto tax rate compare internationally?
A: It's among the lowest—Japan and Italy impose up to 40%, while Germany taxes crypto held >1 year at 0%.
Q: Are crypto-to-crypto trades taxable?
A: Only fiat conversions or asset sales trigger taxable events under the current framework.
Q: What records must miners maintain?
A: Infrastructure usage logs and user identification data, submitted quarterly.
👉 Understanding crypto tax obligations
Risk Disclosure: Cryptocurrency investments carry high volatility risk. Capital loss is possible. Assess risks carefully.