Russia’s New Crypto Tax: 15% on Trading and Mining Income

• Russia proposes a 15% tax on crypto trading and mining income to boost revenue and ensure balance.  
• New regulations require mining operators to report user details and register with tax authorities.  
• Tax measures could generate $521M–$700M annually, enhancing Russia’s crypto-mining leadership. 

Russia amended its crypto tax legislation, proposing a 15% tax on income from crypto asset trading and mining. This aligns with the government’s efforts to establish a balanced taxation policy and increase revenue from the expanding crypto industry.

The amendments classify cryptocurrency as “property” for tax purposes. This means that any income generated from crypto mining will be taxed based on the market value of the mined assets.

The revised bill, focused on income from crypto transactions and mining, has received government approval.

The Finance Ministry stated that this approach is designed to fairly reflect the financial outcomes of mining activities, ensuring a balance between businesses and the state.

Moreover, transactions involving crypto assets will be exempt from value-added tax (VAT), and trading income will be taxed similarly to securities transactions.

Regulations for Mining Operators

The proposed legislation also tightens compliance requirements for mining operators. Operators will need to report detailed information about individuals using their infrastructure. Additionally, companies involved in mining will be required to register with the Federal Tax Service.

Read also: Russia’s Crypto Push: New Exchanges, Stablecoins, and the Ripple Factor

Individual miners, however, can operate without registration if their electricity consumption stays below 6,000 kilowatt-hours per month, approximately six times the average consumption of a Russian household.

Additionally, individual miners and traders will be charged advanced taxation, ranging from 13% to 22%, on annual incomes above 2.4 million rubles.

Industry experts project that these measures could raise 50 billion rubles ($521 million) annually, with large-scale crypto mining expected to contribute around $700 million annually to tax revenues.

With these actions, Russia seeks to enhance its position as a top crypto-mining country. In contrast, the United States has higher tax rates on mining rewards, with income taxes reaching 37% and capital gains taxes reaching 20%.