Emily Walker
The Federation Council of Russia, which is the upper chamber of parliament, has endorsed a significant bill regarding cryptocurrency taxation. This legislation establishes a maximum tax rate of 15% for operations related to Bitcoin (BTC) and other digital currencies.
New Cryptocurrency Tax Legislation to Launch Soon
The upper house of the Russian parliament has ratified a crucial cryptocurrency tax bill aiming to create a supportive regulatory framework for Bitcoin and other digital asset ventures within the nation.
Approved on November 27, the bill now requires President Vladimir Putin’s signature before becoming law, with enforcement starting upon its official publication.
This legislation introduces a cap of 15% on taxes applicable to all individual crypto transactions and mining activities, aligning them with tax rates for securities income.
Miners of Bitcoin and other cryptocurrencies will face tax rates ranging from 13% to 15% on their income, which is assessed based on market value at the point of receipt.
Moreover, the bill designates digital currencies for various uses, including as payment for goods and services, as property. Importantly, all crypto-related operations are exempt from value-added tax (VAT).
Once enacted, operators of Bitcoin and other cryptocurrency mining infrastructure in Russia will be required to provide pertinent client information to local authorities, with possible penalties up to $360 for non-compliance.
It’s important to highlight that the bill does not burden authorized mining services within Russia with tax liabilities. Additionally, crypto mining enterprises may deduct operational costs to lessen their overall tax obligations.
Bitcoin Reaches Record High Against the Russian Ruble
The bill’s endorsement occurs amidst a significant decline of the Russian ruble in the international currency market, having fallen more than 17% against the US dollar this year.
This depreciation has led Bitcoin to achieve an all-time high (ATH) in rubles. Currently priced above 10 million rubles, BTC has seen gains exceeding 200% against the faltering currency this year.
In response to sanctions imposed since the Ukraine crisis, Russia has been exploring the use of cryptocurrencies. During the recent BRICS summit in Kazan, lawmakers discussed strategies to sell BTC to international buyers as a way to bypass these sanctions.
Russia has also shown interest in integrating digital currencies for international transactions as of September. Earlier in the year, President Putin enacted a law granting legitimacy to cryptocurrency mining activities within the country.
Amidst an ongoing energy crisis, Russia has restricted crypto mining in certain areas due to high energy demands. Currently, Bitcoin is trading at $95,162, reflecting a decrease of 0.9% over the past 24 hours.
