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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/putin-signs-law-on-cryptocurrency-property-status" data-wpel-link="internal" rel="noopener noreferrer nofollow">Putin Signs Law on Cryptocurrency Property Status</a><br></p>
<p style="text-align: justify">Russian President Vladimir Putin has enacted a new law that officially recognizes cryptocurrencies as property within foreign trade activities. This significant legislation exempts cryptocurrency mining and sales from value-added tax (VAT), as reported by the state news outlet TASS. The law also sheds light on the necessary reporting processes concerning mining operations.</p>
<h2 style="text-align: justify" id="strong-how-will-cryptocurrency-mining-income-be-taxed-strong"><strong>How Will Cryptocurrency Mining Income Be Taxed?</strong></h2>
<p style="text-align: justify">According to this law, income generated from cryptocurrency mining will be categorized as “in-kind income,” subject to market-based taxation. Miners can deduct their operational expenses from their taxable income. Furthermore, individual miners will encounter a two-tier tax structure with a 13% rate on earnings up to 2.4 million rubles and a 15% rate on amounts exceeding this threshold. From 2025 onward, companies involved in cryptocurrency mining will face a corporate tax rate of 25% on their profits.</p>
<h2 style="text-align: justify" id="strong-what-are-the-reporting-requirements-for-miners-strong"><strong>What Are the Reporting Requirements for Miners?</strong></h2>
<p style="text-align: justify">The law establishes strict reporting duties for operators of mining infrastructure, mandating them to disclose customer information to tax authorities. Noncompliance could lead to penalties of up to 40,000 rubles.</p>
<p style="text-align: justify">Most of the provisions in the law will come into effect upon publication, with some transitional measures expected. Additionally, a prior law was passed in August that restricts cryptocurrency mining to registered entities. These legislative steps aim to enhance transparency and regulation in Russia’s cryptocurrency sector.</p>
<ul>
 <li>Cryptocurrency mining now classified as in-kind income.</li>
 <li>Two-tier tax rates introduced for individual miners.</li>
 <li>Strict reporting requirements imposed on mining operators.</li>
 <li>Penalties for failure to comply with reporting obligations.</li>
</ul>
<p style="text-align: justify">This new legal framework marks a pivotal moment for the cryptocurrency landscape in Russia, pushing for more accountability and integration into the formal economy. With the introduction of these regulations, the country is setting a precedent in its approach to digital currencies.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/putin-signs-law-on-cryptocurrency-property-status" data-wpel-link="internal" rel="noopener noreferrer nofollow">Putin Signs Law on Cryptocurrency Property Status</a></h5>

Putin Signs Law on Cryptocurrency Property Status

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