As of 1 January 2025, Russia introduced a special tax regime for digital currency transactions. Federal Law No. 418-FZ dated 29 November 2024 formally classified cryptocurrency as property under the Tax Code and established clear rules for calculating taxes on mining, sales, and other disposals.
For individuals, the primary tax is personal income tax (PIT). Companies include cryptocurrency operations in their corporate profit tax calculations. Mining and direct sale of cryptocurrency are exempt from VAT — but this exemption does not extend to related services.
The following rules apply to tax residents of the Russian Federation.
- When does tax arise for a cryptocurrency owner?
- Which PIT rates apply to cryptocurrency sales?
- Which expenses can be substantiated?
- Tax return filing and payment deadlines
- How is mining income taxed?
- PIT rates for miners
- Tax treatment upon selling mined cryptocurrency
- Miners’ reporting obligations to the Federal Tax Service (FTS)
- Which tax regimes are prohibited for mining?
- Are cryptocurrency transactions subject to VAT?
- Which documents must be retained?
- Key takeaways
When does tax arise for a cryptocurrency owner?
Simply holding purchased cryptocurrency does not generate taxable income. The Federal Tax Service (FTS) clarifies that tax liability arises only upon sale or other disposal of cryptocurrency. Income from buying, selling, or otherwise disposing of digital currency is subject to personal income tax (PIT).
Tax is calculated not on the full sale value, but on the positive difference between:
- income from the sale; and
- documentarily substantiated expenses incurred to acquire and dispose of the asset.
If supporting documents are unavailable, expenses cannot reduce the tax base. In such cases, PIT may be calculated on the entire sale proceeds.
Therefore, owners must separately track the purchase cost of each sold cryptocurrency unit, the sale proceeds, and associated transaction fees.
Which PIT rates apply to cryptocurrency sales?
Individuals’ income from buying, selling, or otherwise disposing of digital currency is taxed under a two-tier progressive scale:
- 13% — if the annual taxable base does not exceed RUB 2.4 million;
- 15% — on the portion of the taxable base exceeding RUB 2.4 million.
The higher rate applies only to the excess over the threshold — not to the entire income. The FTS classifies income from property disposal (including cryptocurrency) as a distinct category with a maximum rate of 15%.
The amount credited to a bank account in rubles does not, by itself, determine the tax amount. To calculate tax, one must first determine the taxable base — i.e., income minus substantiated expenses.
Which expenses can be substantiated?
The FTS states that only actual, documented expenses directly linked to acquiring and disposing of cryptocurrency may be included in the tax base calculation.
These include, in particular:
- the purchase price of the digital currency;
- exchange and conversion platform fees incurred during purchase and sale;
- fees related to transferring or withdrawing funds.
Acceptable evidence includes bank statements, exchange platform reports, receipts, contracts, and other documents specifying the date, amount, and nature of the transaction.
To support tax calculations, it is essential to retain not only the trade history from your exchange dashboard, but also records of ruble or foreign currency movements. A single entry in a cryptocurrency wallet is generally insufficient to substantiate acquisition cost.
Tax return filing and payment deadlines
Individuals calculate PIT independently and file Form 3-NDFL. The general deadline for submission is no later than 30 April of the year following the income receipt. Tax payment is due no later than 15 July.
For cryptocurrency sale income received in 2025:
- the tax return had to be submitted no later than 30 April 2026;
- the tax must be paid no later than 15 July 2026.
For transactions carried out in 2026, the return is filed in 2027 under the standard procedure.
Form 3-NDFL and supporting documents can be submitted electronically via the taxpayer’s personal account on the FTS website.
How is mining income taxed?
For miners, tax liability arises at the moment they obtain the right to dispose of newly mined cryptocurrency — not only upon subsequent sale.
The income is the market value of the cryptocurrency on the date the miner gains control over it. This income is considered non-monetary (in-kind). If rewards are issued multiple times per day or continuously, income is determined daily for tax purposes.
Market value is based on the closing price on a foreign trading platform meeting Russian tax law requirements. If the cryptocurrency trades on several qualifying exchanges, the taxpayer may select the quotation from any one of them. Values in foreign currency are converted into rubles using the Central Bank of Russia’s official exchange rate on the relevant date. The FTS publishes reference quotations for miners’ income calculations.
PIT rates for miners
Mining income is aggregated with other taxable income and taxed under Russia’s five-tier progressive PIT scale:
- 13% — up to and including RUB 2.4 million;
- 15% — on the portion from RUB 2.4 million to RUB 5 million;
- 18% — on the portion from RUB 5 million to RUB 20 million;
- 20% — on the portion from RUB 20 million to RUB 50 million;
- 22% — on the portion exceeding RUB 50 million.
These thresholds apply to the taxpayer’s total taxable income — not just mining rewards.
The tax base may be reduced by actual, documented expenses directly related to mining. Individuals may claim a special property tax deduction; individual entrepreneurs (IEs) operating under the general tax regime may claim a professional tax deduction.
The FTS confirms that IEs may deduct expenses similarly to corporate profit tax rules — e.g., equipment rental, depreciation, and electricity costs — provided proper documentation exists. If an IE cannot substantiate expenses, a professional deduction of up to 20% of entrepreneurial income may apply.
Tax treatment upon selling mined cryptocurrency
Mined cryptocurrency triggers two separate tax events:
- Tax is calculated when the right to dispose of the newly mined cryptocurrency arises.
- Upon subsequent sale, the financial result (gain or loss) is determined.
To prevent double taxation, the sale proceeds are reduced by the previously taxed value of the cryptocurrency. Documented disposal-related expenses may also be deducted.
Thus, miners must record the market value of each reward at the time income is recognized. That value becomes the basis for calculating the gain or loss on future sale.
Miners’ reporting obligations to the Federal Tax Service (FTS)
Individuals engaged in mining — including participants in mining pools — must report to the FTS:
- the volume of cryptocurrency received;
- the wallet address identifier;
- if mining via a pool — the mining pool’s address identifier.
This information must be submitted electronically via the taxpayer’s personal account no later than the 20th day of the month following the month in which the cryptocurrency was received. The report must be signed with a qualified enhanced electronic signature.
This monthly reporting does not replace the annual Form 3-NDFL. Both individuals and IEs must still declare all taxable income for the calendar year.
Which tax regimes are prohibited for mining?
Companies and individual entrepreneurs engaged in mining may not use:
- the simplified tax system (STS);
- the unified agricultural tax (UAT);
- the patent-based tax system;
- the professional income tax (PIT for self-employed);
- the automated simplified tax system.
Income from mining earned by IEs is taxed under the general tax regime (PIT), while companies pay corporate profit tax. The FTS notes that cryptocurrency trading and mining are subject to different restrictions regarding special tax regimes.
For companies, the corporate profit tax rate on cryptocurrency operations is 25%. Mining income is treated as non-operating income; upon subsequent sale, the taxable result is the difference between revenue, the book value of the cryptocurrency, and disposal-related expenses.
Are cryptocurrency transactions subject to VAT?
The Tax Code explicitly excludes the following from VAT scope:
- digital currency mining operations;
- digital currency sales.
Accordingly, VAT is not levied on the value of mined or sold cryptocurrency.
However, ancillary services related to mining may be subject to VAT separately. Specifically, the FTS clarifies that renting out mining infrastructure or providing computing power may constitute services rendered in Russia and thus be VAT-taxable. Therefore, the VAT exemption for mining itself does not automatically extend to infrastructure operators’ services.
Which documents must be retained?
To substantiate tax calculations, cryptocurrency holders must retain documents enabling full reconstruction of all transaction steps:
- bank statements showing money transfers;
- exchange and conversion platform reports;
- evidence of cryptocurrency acquisition cost;
- fee-related documentation;
- wallet transaction histories;
- documents confirming mining expenses;
- calculations of the ruble value of received cryptocurrency;
- information previously submitted to the FTS.
The FTS requires documentary proof of expenses. Without it, claimed costs cannot reduce taxable income.
Key takeaways
In 2026, cryptocurrency is legally recognised as property for tax purposes in Russia. On sale, individuals pay PIT on the net gain — i.e., sale proceeds minus substantiated expenses — at either 13% or 15%, depending on annual income level.
For miners, income arises upon gaining control over newly mined coins. It is valued at market price and taxed under the standard progressive PIT scale (13–22%). Upon later sale, the previously taxed value is subtracted from proceeds to determine the new taxable gain.
Mining and cryptocurrency sales are VAT-exempt, but infrastructure-related services may be subject to VAT. Accurate, fully documented tracking of acquisition, receipt, movement, and disposal is essential for compliant tax reporting.
FAQ
Do I pay tax just for holding cryptocurrency in Russia?
No — tax arises only upon sale, exchange, or other disposal. Holding cryptocurrency creates no taxable event.
What’s the tax rate on cryptocurrency mining income in 2026?
Mining income is added to your total annual income and taxed progressively: 13% up to RUB 2.4M, then 15%, 18%, 20%, or 22% on higher brackets.
Is VAT charged when I sell Bitcoin or Ethereum in Russia?
No — cryptocurrency sales and mining are explicitly exempt from VAT under the Tax Code. Only related services (e.g., cloud mining rentals) may be VAT-taxable.
