Bitcoin mining profits in Russia to face new 15% tax rules, officials say

The Russian government has given the green light to a draft amendment to a bill aimed at taxing crypto mining and transactions.

Russia is moving forward with a draft amendment to its Bitcoin (BTC) mining legislation that would introduce new tax rules for crypto mining, transactions and related infrastructure. According to the Interfax report, the changes announced by the Ministry of Finance outline new rules for the taxation of income and expenses in the crypto mining sector, as well as the tax obligations of mining infrastructure operators.

According to the changes, cryptocurrencies are defined as property for tax purposes. Income from issued tokens will be taxed according to their market value at the time they are received. The report states that crypto miners can also deduct related expenses from their income.

The changes also state that crypto transactions will not be subject to value added tax. Instead, income from these activities will be taxed along with income from securities transactions. The highest personal income tax rate on cryptocurrency earnings is proposed to be set at 15%.

Additionally, crypto mining infrastructure operators will be required to inform tax authorities about individuals using their facilities for mining, although the exact details that operators must disclose about their customers remain unclear.

Since November 1, crypto mining in Russia is allowed only for registered individual entrepreneurs and organizations. Those who do not have entrepreneur status can produce Bitcoin through mining within the monthly consumption limit of 6,000 Kw/h. The Russian government has also introduced temporary mining bans for certain regions due to power outages, valid from December 1 to March 15, 2025.