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Putin Signs Law Recognizing Crypto as Property, Imposes Up to 15% Tax on Sales

Nov 29, 2024, 10:54 AM

Russian President Vladimir Putin has signed a law recognizing Bitcoin and other cryptocurrencies as property, thereby formalizing a taxation framework for crypto mining and trading in Russia. The legislation, approved by the Federation Council, Russia's upper house of parliament, imposes a personal income tax of 13% on cryptocurrency sales up to 2.4 million rubles, and 15% on higher earnings. The law exempts cryptocurrency mining and sales transactions from value-added tax (VAT). Crypto mining companies are required to report client data, including personal data, to tax authorities or face fines of 40,000 rubles (approximately $400). Mining profits are taxed at the standard corporate income tax rate of 15%. The law also enables the use of digital currencies in foreign trade under an experimental legal regime, marking a significant shift in Russia's crypto regulation.