Taxation of Mining: New Rules

🟠The Russian government has approved amendments to the Tax Code regulating mining and cryptocurrency operations. Starting in 2025, miners will be subject to profit tax (for legal entities) or personal income tax (PIT) (for individuals). Cryptocurrency transactions will not be subject to VAT. The value of digital currency will be determined based on market quotes from major crypto exchanges.

🟠Data center operators are required to report mining activity of their clients to the Federal Tax Service (FTS) quarterly. Failure to comply will result in a fine of 40,000 rubles. Additionally, miners will be allowed to deduct expenses for equipment and electricity when calculating taxes.

🟠The new measures aim to simplify the legalization of mining, but the regulation of cryptocurrency exchanges remains an unresolved issue.