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Russia’s Federal Tax Service introduces an online resource to assist cryptocurrency miners with tax calculations based on exchange rates, aiming to streamline compliance.
A New Era of Crypto Taxation in Russia
In a significant move for the cryptocurrency mining sector, Russia’s Federal Tax Service (FTS) has launched a new online tool designed to help crypto miners calculate their taxes. The tool, which leverages cryptocurrency exchange data, enables miners to determine their income and taxes based on exchange rates. This comes after Russia’s decision to legalise crypto mining, which has brought a clearer regulatory framework but also necessitated better compliance systems for miners.
The Role of the FTS Tool
The FTS tool assists miners by providing data on cryptocurrency exchange rates. Miners can use this data to calculate their income in rubles based on the minimum closing price of a specific digital currency on set dates. This development is expected to simplify the complex process of determining tax liabilities associated with crypto mining activities.
While the tool includes data from prominent exchanges such as Binance and ByBit, it does not yet support all major cryptocurrencies. For instance, Ethereum (ETH), one of the largest cryptocurrencies by market capitalization, is notably missing from the platform. Despite these gaps, the FTS tool remains a valuable resource in helping miners better understand their tax obligations.
The Two-Tiered Tax System for Russian Miners
Following the legalisation of crypto mining in Russia, a two-tiered tax system was introduced in 2024. This system taxes miners at different rates depending on their earnings:
- 13% Tax Rate: Applied to miners earning up to 2.4 million rubles annually.
- 15% Tax Rate: Applied to miners exceeding the 2.4 million ruble threshold.
This structure is designed to ensure that crypto miners contribute fairly to the Russian economy, with a progressive tax system that increases as earnings rise.
Additionally, miners who consume over 6,000 kWh of electricity per month are required to register with the FTS. Failure to comply with registration requirements can lead to fines, ensuring that miners stay within the legal framework of Russia’s crypto mining regulations.
Encouraging Compliance: Self-Verification Required
Despite its potential to simplify tax calculations, the FTS tool comes with a notable caveat. Miners are still required to independently verify the data provided by the tool. This ensures that they are using accurate exchange rate information when calculating their income for tax purposes. By placing this responsibility on miners, the FTS encourages greater awareness and transparency in the tax reporting process.
A Step Toward Simplifying Crypto Regulation
Russia’s introduction of the FTS tax tool is a clear indication of the government’s effort to formalise and regulate the cryptocurrency mining sector. With digital currencies becoming a significant part of the global economy, providing a structured and compliant framework for miners will help Russia better integrate this industry into its broader tax system.
While the tool is a helpful first step, the omission of certain major cryptocurrencies, like Ethereum, highlights the need for further development. However, this move will likely set the stage for more comprehensive solutions to assist miners in the future.
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