Russia approves crypto tax law, classifying digital currencies as property and exempting mining operations from VAT

Odaily News The Federation Council, the upper house of Russia's parliament, approved a government-sponsored bill on Wednesday outlining a tax framework for digital currencies. The legislation was passed in plenary session, having been approved by the lower house, the State Duma, a day earlier. The new law classifies digital currencies, including those used as payment instruments under experimental legal regimes, as property under Russia's domestic tax code. This classification exempts transactions involving digital currency mining and sales from value-added tax (VAT), easing the financial obligations of players in the industry. In addition, services provided by authorized organizations that facilitate transactions within these experimental regimes will also be tax-free. A key provision requires mining infrastructure operators to report personal data on the use of their systems to the tax authorities. Income from digital currency mining will be considered taxable income and form the basis for personal income tax. Danil Volkov, head of the Russian Ministry of Finance's department, said that companies engaged in mining activities will be subject to standard corporate income tax rates. (Bitcoin.com)