Russia to Tax Crypto as Property from 2025
1min read Russia is set to introduce new regulations for cryptocurrency miners in 2025, aiming to bring greater clarity and oversight to the industry. The changes, outlined in Federal Law No. 259-FZ, will require miners to report their earnings monthly and operate under approved entities. Starting in 2025, digital currencies will be taxed as property, with personal income tax rates of 13% on earnings up to 2.4 million rubles and 15% on higher amounts. Miners must report data to authorities, with fines for non-compliance.
Under the new laws, digital currencies like Bitcoin will be officially recognized as property under Russian tax regulations. This shift means that cryptocurrencies will be treated like other forms of property when it comes to taxation. From January 2025, individuals selling cryptocurrencies will have to pay personal income tax at the rates mentioned above, bringing cryptocurrency into the regular tax system and ensuring transparency for tax authorities.
Mining operations will not be subject to Value Added Tax (VAT), providing a significant advantage for miners by reducing their overall tax burden. However, mining operators must now report their earnings to the government each month by the 20th. Failure to comply may result in fines of up to 40,000 rubles. Additionally, miners will be restricted in regions with limited energy resources to prevent overburdening local power grids. These restrictions aim to reduce illegal activities within the industry and ensure only legitimate participants can mine legally and rightfully.
Mining companies will face a 25% tax on their earnings starting in 2025, aligning them with other businesses under Russia’s corporate tax system. This ensures that corporate crypto mining profits are taxed similarly to traditional business profits. Russia will also allow tax-free cryptocurrency transactions under "experimental legal regimes" to facilitate international cryptocurrency payments, giving businesses more flexibility without worrying about domestic tax obligations.
By officially recognizing cryptocurrencies as property, implementing personal income taxes, and offering some relief for miners, Russia is setting the stage for a more regulated and secure crypto trading environment in the country. These changes come as Russia seeks to leverage the trillion-dollar cryptocurrency industry, following the US's push to become a Bitcoin leader. With the country facing US sanctions and economic challenges, these new rules could provide relief to existing investors and 