The Russian State Duma has approved a tax bill for cryptocurrency operations, aligning with the future law on digital currency rights.
The State Duma of Russia passed a tax bill concerning cryptocurrency operations during its first reading on June 9. This legislation aims to modify the Tax Code in line with the upcoming "On Digital Currency and Digital Rights" law.
Key Changes Proposed
Under the new framework, the tax base for cryptocurrency transactions will be determined by calculating the difference between income and documented expenses, using the FIFO (First In, First Out) inventory method. A notable feature of the bill is the introduction of netting, which allows for the offsetting of profits and losses from digital currency operations within the same tax period.
For personal income tax (PIT), entities such as brokers and digital depositories will act as tax agents if they facilitate income payments to individuals. The Budget and Tax Committee of the State Duma has proposed to extend these responsibilities to cryptocurrency exchanges during the bill's second reading discussions.
For corporate entities, income and expenses tied to digital currency transactions (excluding mining) under international trade contracts will contribute to the overall profit tax. Additionally, foreign digital rights will have a similar tax treatment as cryptocurrencies.
Transactions involving foreign digital rights that certify monetary claims will be exempt from VAT, as will services provided by depositories and platforms facilitating cryptocurrency exchanges.
Proposed rules will include periodic payments on digital financial assets (DFAs) not associated with buybacks in the profit tax base, akin to interest income from loans. A preferential tax rate will be introduced for ruble-denominated DFAs from Russian issuers traded on organized markets, mirroring the bond interest tax rate.
Implementation Timeline
The government initially presented this bill to the State Duma on April 29. If it passes, the law will take effect one month post-publication. Provisions regarding cryptocurrency market valuations for miners are scheduled to commence on January 1, 2028, while new regulations for debt DFAs will begin on January 1, 2030.
It is important to note that a previous tax proposal from November 2024 suggested a PIT rate ranging from 13% to 15% and a 25% profit tax for businesses. The foundational legislation on "Digital Currency and Digital Rights" was initially approved in its first reading on April 21, 2026.
