Russia’s Federation Council approves a landmark bill imposing a 13%-15% tax on Bitcoin and crypto mining, aiming to foster a favorable digital asset ecosystem.
The nation’s highest chamber of parliament, the Federation Council of Russia, has approved a historic cryptocurrency taxation measure. One of its main features is the law’s maximum % tax rate of 15% on Bitcoin (BTC) and other digital asset mining activities.
A new tax law about cryptocurrency is about to take effect.
The new historic cryptocurrency tax bill, which aims to create a favorable legal climate for Bitcoin and other digital asset enterprises in the nation, has received approval from Russia’s upper parliament.
Vladimir Putin, the president of Russia, has yet to sign the legislation, which was approved on November 27. Following approval, the law will be formally published and go into force.
The measure effectively aligns revenue from digital assets with the tax rates imposed on income from securities transactions by imposing a maximum tax ceiling of 15% on all individual bitcoin transactions and mining operations.
Miners of Bitcoin and other cryptocurrencies must pay taxes on their earnings ranging from 13% to 15%. According to the bill, income from mining operations will be subject to taxation at the market value at the time of receipt.
Furthermore, the bill labels digital currencies for various purposes, such as paying for services or property. The bill is noteworthy because it exempts all cryptocurrency-related operations from value-added tax (VAT).
Operators of Bitcoin and other cryptocurrency mining facilities in Russia will be required by legislation to provide the local authorities with pertinent customer information. Penalties of up to $360 could result from failure to comply.
It is important to note that the bill will not impose any taxes on services provided by permitted mining businesses inside the borders of Russia. Cryptocurrency mining companies can also deduct operating expenses to lower their overall tax obligation.
Bitcoin and the Russian Ruble Reach an All-Time High
The bill was approved when the Russian ruble was plunging on international exchange markets. The ruble has lost about 17% of its value compared to the US dollar this year.
Bitcoin’s all-time high (ATH) vs the ruble results from this devaluation. As of this writing, Bitcoin is trading above 10 million rubles, and its year-to-date gains over the faltering fiat currency have surpassed 200%.
Since the start of the conflict in Ukraine, Russia has been actively using cryptocurrencies to try to get around sanctions placed on it. Critical MPs suggested selling Bitcoin to foreign purchasers at this year’s BRICS summit in Kazan, Russia, as a practical way to get over Western sanctions.
Russia also indicated interest in implementing digital assets for international payments in September. A bill authorizing cryptocurrency mining in the nation was signed by President Putin earlier this year.
Due to its energy-intensive nature, crypto mining has been banned in some areas of Russia, which is also experiencing an energy crisis. As of this writing, Bitcoin is trading at $95,162, down 0.9% over the previous day.
