Russia to tax non-residents’ crypto income at 30%

Russia’s finance ministry has come up with a mechanism to tax crypto-related income that will complement upcoming rules for digital currency transactions.

Under the proposed scheme, non-residents will transfer a significantly larger share of their profits to the Russian state than investors and earners residing in the country.

Moscow to tap into money made on Russia’s regulated crypto market

The Russian Ministry of Finance (Minfin) has prepared amendments to the country’s Tax Code to sort out the taxation of transactions involving digital assets, the local press unveiled.

The draft legislation has been approved by the federal government’s commission on legislative activity on Monday, the business daily Vedomosti reported, quoting sources present at the meeting.

The proposal aims to align national tax rules with the massive bill “On Digital Currency and Digital Rights” recently passed on first reading by the State Duma, the lower house of parliament.

After much deliberation, Russia finally decided to regulate rather than ban cryptocurrencies like Bitcoin through a package of laws scheduled for adoption by July 1, 2026.

The push is part of a plan to bring this and other sectors of the Russian economy out of the shadows, which was announced by the executive power in Moscow last year.

A dedicated new article will determine the payment of personal income tax on profits from the sale or other disposal of digital assets, such as exchanges for fiat money.

The positive difference between revenues from crypto transactions and expenses, such as acquisition costs, intermediary fees and storage expenses, will form the tax base.

Services provided by digital depositories and exchanges will be exempt from VAT. The same applies to what the document calls “related services” pertaining to trading and issuance.

Russia to use progressive scale for personal income tax on crypto

In the absence of proper regulations, many cryptocurrency transactions in Russia were largely untaxed until now, with only a few exceptions.

Mining became the country’s first regulated crypto activity in late 2024. Companies and sole proprietors engaged in the business are required to register with the Federal Tax Service (FNS).

Since January 1, 2025, income from cryptocurrency mining received by legal entities is subject to corporate income tax at a rate of 25%.

Individual entrepreneurs and private citizens mining digital coins are required to pay personal income tax according to a progressive scale, between 13 and 22%. However, the tax rate for non-residents is much higher, at 30%.

These rates will apply to other crypto transactions as well, although with some specifics. For example, income derived from mining will be reported as part of the general income, while profits from investment and trading will form a separate tax base.

Intermediaries such as brokers and trustees will be responsible for withholding and transferring taxes owed by their clients to the state budget.

Whether crypto investors will be treated fairly is an open question

Vladimir Gruzdev, chairman of the Board of the Association of Lawyers of Russia, believes the amendments will curb tax evasion and boost transparency in the crypto space.

According to Alexey Istomin, partner at the Pareto Legal firm, the Minfin’s taxation mechanism treats digital financial assets like traditional financial instruments without increasing the tax burden.

“For the most part, the new bill aims to close existing gaps in the taxation of cryptocurrency and certain transactions involving it,” added Denis Polyakov, head of digital economy practice at GMT Legal.

Others warn, however, that there are more pressing issues to solve. Russia needs to first “find someone to tax,” remarked Dmitry Machikhin, founder and CEO of the compliance platform BitOK.

Commenting to Vedomosti, he emphasized that the proper conditions that would convince crypto owners to emerge from the shadows are yet to be created.

Russia’s upcoming crypto framework has been criticized for being overly restrictive. It legalizes cryptocurrencies but admits only the largest coins to the regulated Russian market.

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