Miners will pay the same income tax as other industries. But the payment process will be different.
Representative of the Federal Tax Service (FTS) Alexey Katyaev explainedhow miners will pay taxes.
Two stages of taxation
According to Katyaev, miners will be required to pay income tax on general terms. The process will take place in two stages:
- First stage — “advance payment for mined cryptocurrency.” The tax base will be calculated from the moment digital assets are credited to the identifier address, even if the crypt is located at an address in the mining pool.
- Second stage occurs when cryptocurrency is withdrawn from an identifier address or sold. If the price of a crypto asset has increased since the first payment of the tax, then the miner is obliged to pay additional tax on the excess amount. If the price falls, he will be able to offset the loss on his tax return.
Katyaev emphasized that there are restrictions in the tax system for miners. For example, if a company has some kind of production and mining, losses from mining cannot be offset when calculating taxes on production. The same thing works the other way around.
Mining will not be subject to value added tax (VAT) because the cryptocurrency that miners mine is not used domestically.
Registers and control
The Federal Tax Service will collect information about miners and mined cryptocurrency, including data on companies, mining infrastructure operators and the volume of electricity consumed. All information can be submitted through the tax service website.
In total, the regulator will create three registers:
- For mining infrastructure operators. This register will contain information about the company, the location of the data center, power sources and clients.
- For miners. This will contain information about the company and information about mining equipment.
- For mined cryptocurrency. This register is closed. It will contain information about the mined cryptocurrency and identifier addresses.
It is expected that with the introduction of controls on income, expenses and taxes, the industry will become more transparent. According to experts, this will allow large players to enter the exchanges and attract additional funds for the development of mining in Russia.
Earlier, the Industrial Mining Association (IPM) predicted that the state treasury would receive 50-60 billion rubles annually in the form of taxes on crypto mining.
At the beginning of August, Russian President Vladimir Putin signed a law on mining and cryptocurrencies. The regulation on the legalization of mining comes into force on November 1st.
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Source: Cryptocurrency
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