Russia approves digital currency tax law, classifying digital currencies as property and exempting mining operations from value-added tax

ChainCatcher news, according to Bitcoin.com, the Federation Council of the Russian Parliament approved a government-initiated bill on Wednesday that outlines the tax framework for digital currencies. This legislation was passed in a plenary session after being approved by the lower house, the State Duma, the day before.

The new law classifies digital currencies (including currencies used as payment tools under an experimental legal regime) as property under Russian domestic tax law. This classification exempts value-added tax (VAT) on digital currency mining and sales transactions, easing the financial obligations of industry participants. Additionally, services provided by authorized organizations that facilitate transactions within these experimental regimes will also be tax-exempt.

An important provision requires operators of mining infrastructure to report personal data of individuals using their systems to tax authorities. Income from digital currency mining will be considered taxable income, forming the basis for personal income tax. Danil Volkov, head of the Russian Ministry of Finance department, stated that businesses engaged in mining activities must pay taxes at the standard corporate income tax rate.