The Russian Ministry of Finance has come up with a mechanism for taxing cryptocurrency-related income that will complement the upcoming rules for digital currency transactions.
Under the proposed scheme, non-residents would transfer a much larger share of their profits to the Russian state than would investors and income earners residing in the country.
Moscow is exploiting money made from Russia’s regulated cryptocurrency market
Local press revealed that the Russian Ministry of Finance (Minfin) has prepared amendments to the country’s tax law to regulate taxes on transactions involving digital assets.
The federal government’s Legislative Activity Committee approved the draft law on Monday, the Vedomosti economic daily reported, citing sources who attended the meeting.
The proposal aims to align national tax rules with the recently issued massive draft law “On Digital Currency and Digital Rights.” Pass On first reading by the Duma, the lower house of Parliament.
After much deliberation, Russia has finally decided to regulate cryptocurrencies like Bitcoin instead of banning them through a package of laws scheduled to be adopted by July 1, 2026.
This payment comes within the framework of a plan to bring this sector and other sectors of the Russian economy out of the shadows, which was announced by the executive authority in Moscow last year.
A new dedicated article will define the payment of personal income tax on profits from the sale or other disposal of digital assets, such as fiat money exchanges.
The positive difference between revenues from cryptocurrency transactions and expenses, such as acquisition costs, brokerage fees and storage expenses, will constitute the tax base.
Services provided by digital warehouses and exchanges will be provided exempt From value added tax. The same applies to what the document calls “related services” related to trading and issuance.
Russia uses a graduated scale for personal income tax on cryptocurrencies
In the absence of proper regulations, many cryptocurrency transactions in Russia have been largely tax-free so far, with only a few exceptions.
Mining became the first regulated cryptocurrency activity in the country in late 2024. Companies and sole proprietors involved in this business must register with the Federal Tax Service (FNS).
Since January 1, 2025, income from cryptocurrency mining received by legal entities is subject to corporate income tax at a rate of 25%.
Individual entrepreneurs and citizens engaged in cryptocurrency mining are required to pay personal income tax on a sliding scale of 13-22%. However, the tax rate for non-residents is much higher, at 30%.
These rates will apply to other cryptocurrency transactions as well, although there are some details. For example, income derived from mining will be reported as part of general income, while profits generated from investment and trading will form a separate tax base.
Intermediaries such as brokers and trustees will be responsible for withholding and remitting taxes owed by their clients to the state budget.
Whether cryptocurrency investors will be treated fairly is an open question
Vladimir Gruzdev, Chairman of the Board of Directors of the Lawyers’ Association of Russia, believes that the amendments will reduce tax evasion and enhance transparency in the field of cryptocurrencies.
According to Alexey Istomin, partner at the Pareto law firm, MinvinThe tax mechanism for “digital financial assets” is treated like traditional financial instruments without increasing the tax burden.
“Mostly, the new bill aims to fill existing gaps in the taxation of cryptocurrencies and some transactions related to them,” added Denis Polyakov, Head of the Digital Economy Practice at GMT Legal.
However, others warn that there are more pressing issues to resolve. Dmitry Machikhin, founder and CEO of compliance platform Bitok, noted that Russia first needs to “find someone to enforce taxes.”
In his comment to Vedomosti, he emphasized that the appropriate conditions that would convince cryptocurrency owners to come out of the shadows have not yet been created.
It was the next crypto framework in Russia criticize Because it is overly restrictive. It legitimizes cryptocurrencies however He confesses Only the largest coins on the regulated Russian market.
