New law on taxation of digital currency: what you need to know

In recent years, digital currencies have been gaining popularity not only among investors, but also as a means of payment. In response to the growing interest in cryptocurrencies and to streamline their use, the Russian State Duma passed a law on taxation of digital currency, which was an important step in regulating this segment of the economy.

Recognition of digital currency as property

The main aspect of the new legislation is the recognition of digital currency as property. This means that transactions with cryptocurrencies will be subject to taxation like any other type of property. The bill was initiated by the government and passed in the second and third readings at once, which emphasizes its importance and necessity.

Experimental regime and taxation

Under the new law, digital currency may be used as a means of payment under foreign trade agreements under an experimental regime. This will allow companies and individual entrepreneurs to conduct transactions with cryptocurrencies under more simplified conditions. However, it is important to note that the services of an authorized organization that ensures the conclusion of transactions with digital currency under this regime will not be subject to taxation in Russia.

Taxes on mining and realization of digital currency

One of the most discussed aspects of the new law was the taxation of mining operations and realization of digital currency. Reportedly, these operations will not be subject to VAT, which is positive news for miners and investors. However, operators of mining infrastructure are required to provide tax authorities with information on individuals who use their infrastructure to mine digital assets. This is necessary to prevent tax evasion and money laundering.

Penalties for failure to provide information

The law also introduces a fine of 40,000 roubles for late submission of information on miners. This measure is aimed at strengthening control over activities in the field of cryptocurrencies and preventing the use of digital assets to finance illegal activities. The authors of the bill emphasize that currently tax authorities have no information about cryptocurrency wallets opened by Russian legal entities and citizens.

Date of receipt of income from mining

According to the law, the date of actual receipt of income from the mining of digital currency is the date on which a person has the right to dispose of such digital currency. This clarification is important for understanding when a taxpayer should take into account income from cryptocurrency transactions.

The tax rate on mining income is standard and is 13-15%.