TechFlow news, November 28 — According to Bitcoin.com, Russia's upper house of parliament, the Federation Council, approved on Wednesday a government-backed bill outlining a tax framework for digital currencies. The legislation passed in a plenary session after being ratified one day earlier by the lower house, the State Duma.
The new law classifies digital currencies—including those used as payment instruments under experimental legal regimes—as property under Russian domestic tax law. This classification exempts cryptocurrency mining and sales transactions from value-added tax (VAT), thereby reducing financial obligations for participants in the industry. Additionally, services provided by authorized organizations facilitating transactions within these experimental regimes will also be tax-exempt.
A key provision requires operators of mining infrastructure to report personal data of individuals using their systems to tax authorities. Income derived from cryptocurrency mining will be treated as taxable income and serve as the basis for personal income tax. Danil Volkov, head of the Russian Ministry of Finance department, stated that enterprises engaged in mining activities must pay corporate income tax at the standard rate.
