On November 15, the Russian government made changes to the mining bill regarding the taxation of cryptocurrency. They decided that digital currencies would be seen as property for tax purposes. This means that any income received in the form of cryptocurrencies from mining will be valued at the market price when they were obtained. However, the costs incurred during the mining process can be deducted.
The decision to tax the financial results of mining was made after discussions with businesses. The government believes that this is the fairest way to show the results of this activity. They want to strike a balance between the interests of businesses and the state.
When it comes to transactions involving digital currency, they will not be subject to VAT. Any income from these transactions will be treated the same way as income from transactions involving securities. The maximum personal income tax rate for taxing cryptocurrency will not go over 15%.
Operators of mining infrastructure will be required to provide the tax authorities with information about individuals who are mining using their infrastructure. This is to ensure that everyone who is involved in mining is accounted for.
It’s important to note that on November 1, a regulation was put into effect in Russia to create a register of miners. The country already had basic regulations on cryptocurrency mining in place since July. Additional changes now give the government the power to restrict mining activities in certain areas. The Ministry of Energy has even identified regions where bans on cryptocurrency mining may be implemented in the future.
To further control the energy consumption related to mining, the Russian Federation has now set a limit on how much energy individual miners can use. This is to ensure that the mining activities are sustainable and not putting a strain on the country’s energy resources.
Overall, these changes in the Russian cryptocurrency taxation laws show that the government is taking steps to regulate this emerging industry while also ensuring that it remains fair and sustainable in the long run.