According to the law passed by the Russian parliament, individuals who are into crypto mining might see themselves paying higher taxes compared to companies doing the same thing. This information was made known by a top official in the Russian parliament.
The country’s government is yet to make its stand known towards the regulation of cryptocurrencies. Still, it has recognized mining of digital currencies as an activity that should be levied; miners are to pay tax from mining profits.
Taxation Of Crypto Miners
As stated by Vladimir Gutenev, the Chairman of the Industry Committee in Duma, businesses or companies that are into crypto mining should remit tax payment of nothing less than 6%. Also, Gutenev stated that individuals mining crypto would have to pay an income tax of nothing less than 15% from the profit realized.
One would expect that businesses should pay more than individuals, but the reverse is the case here.
As seen on Finmarket, the lawmaker told individuals at a press meeting that if the government must recognize digital currencies as securities, levies must be remitted after cashing out mined cryptos. Gutenev meant the rewards received by individuals and businesses after mining for coins.
Usually, the rewards are sent to the digital wallet of the miner who can choose to leave them there or convert them into currency notes. The Russian government is yet to make its stand known concerning the mining of cryptocurrencies and their related activities.
Regulation on Crypto
There is a debate between the Ministry of Finance and the Russian Bank concerning the legalization of crypto in the country. The Ministry of Finance and other regulatory bodies prefer crypto to be regulated and not banned totally. The Bank of Russia wants a complete ban on crypto and related activities like minting and trading.
The government of Russia has swayed in favor of the crypto community and has released a set of rules that would govern the sector and its activities. Mining was mentioned as one such activity.
Lately, President Putin has given reasons why Russia is the best place for crypto mining. Since China banned cryptocurrencies last year, Russia’s mining industry has developed.
In a recent study on mining capacity, Russia was ranked third. This confirms the statement of the President concerning the mining potential of the country.
Since cryptocurrencies are now legal in Russia, crypto holders can finally rest. Regarding the high tax fees on individual crypto mining, it is uncertain if those affected would plead their case in court.