The Russian Federation Council has approved sweeping amendments to the country’s Tax Code formalizing the taxation framework for digital currencies like Bitcoin (BTC).
The legislation, agreed to on November 27, represents a critical step toward regulating the rapidly growing crypto while ensuring tax compliance.
The law, titled ‘Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation’, was introduced by Alexander Shenderiuk-Zhidkov, Deputy Chairman of the Federation Council Committee on Budget and Financial Markets.
The amendments define digital currencies as taxable property, providing legal clarity in line with Russia’s broader regulatory goals.
Under the code, income earned from crypto transactions will be taxed under a progressive personal income tax system.
The draft stipulates a tax rate of 13%, while higher income brackets will face a rate of 15%. The structure aims to balance government revenue generation with fairness for individuals and businesses involved in digital asset trading.
Additionally, mining operators must report detailed information about their activities to local tax authorities.
It is a move aimed at increasing transparency and addressing potential regulatory weaknesses in the mining sector.
The legislation exempts certain crypto activities from value-added tax (VAT) related to mining and sales of digital currencies, distinguishing them from other taxable economic activities.
This provision is seen as an important incentive for miners and crypto enterprises operating in Russia.
