Vladimir Putin signed law on digital currency taxation

Russian President Vladimir Putin signed a law amending the first and second parts of the Tax Code to regulate the taxation of digital currency. The corresponding document is posted on the official Internet portal for legal information.

The document establishes the rules for taxing income and expenses from digital currency mining, purchase, and sale. According to the amendments, digital currency is considered property for tax purposes.

Property also includes currency used for foreign trade settlements within digital innovation's experimental legal regime (ELR) framework. Mining and sale of digital currency will not be subject to VAT. Also, you will not have to pay taxes on the services of an organization that provides transactions within the ELR.

Income in the form of digital currency obtained as a result of mining will be determined based on the market quotation. In this case, it is recognized as the closing price on a foreign crypto exchange.

The law introduces restrictions on tax regimes. Organizations and individual entrepreneurs involved in mining and selling digital currency do not have the right to switch to paying a single agricultural tax or apply a simplified taxation system and a special tax regime called an "Automated, simplified taxation system."

The patent system and self-employed regime do not apply to mining and transactions with digital currency.

Author: Eduard Kuskarbekov