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Russians mining crypto pays at least 15% taxes, companies – no less than 6%, says lawmakers – Mining Bitcoin News
Individuals who mine cryptocurrency will face a higher tax burden than companies operating in the industry, a senior member of Russia's parliament has suggested. While digital currency mining has yet to be regulated in Russia, authorities are leaning towards recognizing it as an economic activity, which will allow the government to tax mining profits. Profits from cryptocurrency mining in Russia can be taxed like securities Personal income tax for individual crypto miners who withdraw their profits into the traditional financial system cannot be less than 15%, the head of the Industry Committee at the State Duma, Vladimir Gutenev recently stated. …
Russians mining crypto pays at least 15% taxes, companies – no less than 6%, says lawmakers – Mining Bitcoin News
Individuals who mine cryptocurrency will face a higher tax burden than companies operating in the industry, a senior member of Russia's parliament has suggested. While digital currency mining has yet to be regulated in Russia, authorities are leaning towards recognizing it as an economic activity, which will allow the government to tax mining profits.
Profits from cryptocurrency mining in Russia can be taxed like securities
The personal income tax for individual crypto miners who withdraw their profits into the traditional financial system cannot be less than 15%, according to the head of the industry committee at the State Duma, Vladimir Gutenev recently explained. The lawmaker added that the minimum tax rate for companies or individual entrepreneurs engaged in the minting of digital currencies as a business activity should be at least 6%.
Quoted by the business news portal Finmarket, Gutenev explained at a press conference that if cryptocurrencies are to be treated as securities in the Russian Federation, income taxes will have to be paid when withdrawing the mined coins.
The MP was referring to the mining bonuses that both individuals and legal entities can receive. These payments for processing blockchain transactions are credited to cryptocurrency wallets. Miners can convert the digital coins into fiat currency.
The legal status of crypto mining and a number of other cryptocurrency-related activities has yet to be defined in Russia. A debate is currently taking place between government institutions to determine Moscow's regulatory approach.
The Central Bank of Russia suggested a blanket ban on operations such as issuing, trading and mining private digital currencies, which it calls “monetary substitutes.” However, the monetary authority has found itself in it isolation like the Treasury Department, other departments and regulators prefer legalization under strict rules to a complete ban.
The federal government, which sides with the Ministry of Finance in this matter, has prepared a regulation Timetable for the sector and mining added to the document. President Vladimir Putin recently highlighted Russia's competitive advantages as a mining location, while industry observers doubt that ban on coin minting is practically possible.
Russia's role in the crypto mining scene has increased since China cracked down on the industry in May last year. A study by the Cambridge Center for Alternative Finance ranks Russia third in terms of mining capacity after the United States and Kazakhstan. As of August 2021, the energy-rich nation accounted for over 11% of the global Bitcoin hashrate.
Do you think Russia will legalize crypto mining and tax miners' profits? Share your expectations in the comments section below.
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