Russian tax residents will be required to report to the fiscal authorities on their cryptocurrency transactions, as well as pay taxes on income from January 1, 2025.

Amendments to the Tax Code were signed by Russian President Vladimir Putin. Law admitted digital currency as taxable property and established that transactions with cryptocurrency are not subject to value added tax (VAT).

The tax base will be calculated based on the market quote of the digital currency on the date of receipt of income. Income from the sale is determined based on the actual sale price of the asset, but not lower than the market quote reduced by 20%.

At the same time, the income of mining companies will be possible reduce for the amount of indirect costs incurred. When purchasing a digital currency, its value will be determined for the tax authorities based on the purchase price – but not higher than the market quote of the digital currency, increased by 20%.

Mining companies will have to pay income tax at tax rates for legal entities (25%), and individuals will have to pay personal income tax. For individuals, income from transactions with digital currency will be taken into account in the same tax base as income from transactions with securities. From 2025, the base personal income tax rate will be 13%, and if a citizen’s cryptocurrency income exceeds 2.4 million rubles per year – 15%.

Earlier, the head of the “New People” faction in the State Duma, Alexei Nechaev, said that the changed legislation could bring good income to the Russian budget, as well as balance the energy system.