The Russian Federation Council, the upper chamber of the country’s parliament, has passed a bill that would tax cryptocurrency transactions and mining, effectively eliminating value-added tax (VAT) for crypto transactions. The bill now awaits approval from President Vladimir Putin before it can be implemented.
The Federation Council announced on Wednesday that it had approved the amendments, following similar approval from the lower house, the State Duma, the day before. These amendments, proposed by the Russian government, classify digital currency as a form of property.
According to the amendments, crypto transactions will no longer be subject to VAT, and profits from trading will be taxed at the same rates as securities transactions, with a maximum personal income tax rate of 15%, as reported by Russian news agency Interfax.
Upon becoming law, those responsible for operating crypto mining facilities will be required to submit client information to tax authorities, and income from mining will be taxed based on its market value at the time of receipt.
