For mining, taxes will be based on the market value of assets at the time they are received. Miners will also be allowed to deduct mining expenses from their taxable income. The new rules will require mining infrastructure operators to submit regular reports on crypto miners using their services.
The Russian Ministry of Finance explained that taxing mining income ensures a fair representation of these activities. It emphasized that the approach balances the state’s interests and those of businesses.
This move is part of Russia’s ongoing effort to regulate the crypto industry. In recent months, the government has taken steps to control crypto mining’s energy consumption and better regulate the sector. This amendment follows the crypto taxation bill introduced in December 2020 after the Russian Federal Tax Service proposed taxing miners’ unrealized gains last month.