Russia Approves Crypto Tax Bill

The approval of a new bill by Russian lawmakers means that soon, industrial Bitcoin miners will have to pay taxes on their revenues. The amended tax code was passed by the State Duma, with Komsomolskaya Pravda reporting that the bill will now move to the Russian Senate for approval before being presented to Vladimir Putin for signing.

It is expected that this process will be completed quickly, given the swift actions of the Duma. The legislation imposes a flat tax rate of 13% for miners earning up to 2.4 million rubles (about $21,210) per year, and a higher rate of 15% for those earning more than that.

This is the first time that cryptocurrency has been officially recognized as a form of property in Russia, addressing previous uncertainties surrounding its legal status. The bill also states that miners will be exempt from value-added tax (VAT) on the tokens they mine and sell on crypto exchanges.

However, they are required to report their operations to the Federal Tax Service (FTS). Non-compliance could result in fines of up to 40,000 rubles ($354). These developments come after President Putin signed a law in August legalizing crypto mining in Russia, which went into effect on November 1.

The government has also issued decrees temporarily banning mining in certain regions to address energy shortages during winter months. The FTS has reported around 150 companies have already applied for mining permits, with an expected increase in applications.