- Putin issues a new law: recognizing crypto as property exempt mining and sales from VAT
- Different rules and taxes for recently allowed crypto mining
- Russia relies on crypto to save the economy
Putin issues a new law: recognizing crypto as property exempt mining and sales from VAT
Putin moves further into the cryptocurrency industry. The president signed a new cryptocurrency law that allows crypto to be recognized as property. Profits from buying, selling, or trading any digital currencies and tax rates get set at 13 percent for 2.4 million rubles and at 15 percent for amounts over that limit.
TASS reported[1] that the Russian president signed a law officially recognizing digital currencies as property in foreign trade settlements under the experimental legal regime ELR. These regulations also mean that crypto mining sales, previously legalized in the country, are not subject to VAT value-added tax.
The report states that crypto transactions within the ELR are tax-free. However, mining operators must report to tax authorities about their services. If they don’t submit the information on time, they could face a fine of 40,000 rubles.
Different rules and taxes for recently allowed crypto mining
Income from crypto mining will be considered "income in kind" and taxed at market value, with mining-related expenses allowed as deductions. A two-tier tax system will apply to buying, selling, or trading crypto. The tax rate is 13% on income up to 2.4 million rubles and 15% above that amount[2].
For companies, crypto mining profits will be taxed at the standard corporate rate of 25% starting in 2025.
The law also says that people and businesses involved in crypto mining and trading are not eligible for certain tax benefits, like simplified tax systems or agricultural tax breaks. Special tax statuses, such as the patent system or self-employed status, also do not apply to crypto-related activities.
The law takes effect immediately once it is officially published, though some parts may have specific start dates. Transitional measures may also be implemented to help businesses adjust to the new rules.
Russia relies on crypto to save the economy
V. Putin makes big moves and adapts to the rest of the Western world. In September, Russia launched a trial to test using cryptocurrency for exchanges and cross-border payments. The trials use the National Payment Card System to enable exchanges between rubles and cryptocurrencies.
These trials are aimed at helping Russian businesses overcome payment issues caused by international sanctions. The sanctions have made it harder for companies to use traditional payment methods for both local and international transactions.
In August, President Vladimir Putin signed a law that legalizes cryptocurrency mining in Russia. Under this law, only Russian companies and registered individual entrepreneurs can mine cryptocurrency. However, individual miners are not required to register if their energy usage stays within certain government limits.
The law also allows foreign digital assets to be traded on Russian crypto platforms, though the Bank of Russia can restrict listings that could threaten financial stability. This month, Putin also announced that crypto will be banned in certain territories for winter.
At a government meeting on economic matters, Putin recently stressed the importance of creating a clear legal framework, building infrastructure, and supporting the use of cryptocurrencies to boost economic growth.
