Russia Advances Cryptocurrency Tax Legislation

According to Foresight News, the Russian government's Legislative Activities Committee has moved forward with a cryptocurrency tax bill on November 11. This legislation classifies cryptocurrency as property and establishes distinct tax requirements for individual and corporate miners. Under the new regulations, businesses must register with the Federal Tax Service to legally conduct mining operations, while individuals consuming less than 6,000 kilowatt-hours of electricity per month are exempt from registration. The proposed framework introduces a two-stage taxation model. The first stage involves taxing cryptocurrency upon receipt, with the tax base calculated based on the closing price on major exchanges. The second stage imposes taxes upon sale, with additional taxes applied if the selling price exceeds the initial taxable value. Starting in 2024, individual traders and miners with annual incomes exceeding 2.4 million rubles will be subject to a progressive tax rate ranging from 13% to 22%. Meanwhile, the corporate tax rate is set to increase to 25% in 2025. The Industrial Mining Association estimates that these tax measures could generate 50 billion rubles (approximately $521 million) in annual revenue for the budget.