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 rules for calculating taxes on mining, sale, and other disposals of digital assets.
For individuals, the main tax is personal income tax (PIT). Companies include cryptocurrency operations in their corporate profit tax calculations. Mining and direct sales 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 cryptocurrency ownership triggers a tax liability
- PIT rates applicable to cryptocurrency sales
- Deductible expenses for tax purposes
- Tax return filing and payment deadlines
- How mining income is taxed
- PIT rates for miners
- Tax treatment when selling mined cryptocurrency
- Miners’ reporting obligations to the Federal Tax Service (FTS)
- Tax regimes prohibited for mining activities
- VAT applicability to cryptocurrency operations
- Required documentation to retain
- Key takeaways
When cryptocurrency ownership triggers a tax liability
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. Individuals’ income from buying, selling, or otherwise disposing of digital assets 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
- documented expenses incurred to acquire and dispose of the asset.
If supporting documents are unavailable, expenses cannot reduce the tax base — meaning PIT may be calculated on the entire sale proceeds.
Therefore, owners must track separately: purchase cost per unit sold, sale proceeds, and transaction-related fees.
PIT rates applicable to cryptocurrency sales
Individuals’ income from buying, selling, or otherwise disposing of cryptocurrency is taxed using 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 total income. The FTS classifies gains from property disposal (including crypto) as a distinct category, capped at 15%.
The amount credited to a bank account in rubles does not, by itself, determine tax liability. To calculate tax, taxpayers must establish the taxable base: income minus documented expenses.
Deductible expenses for tax purposes
The FTS states that only actual, documented expenses directly linked to acquiring and disposing of cryptocurrency may be deducted when calculating the taxable base.
Eligible expenses include:
- purchase price of the digital asset;
- exchange and conversion platform fees incurred during purchase and sale;
- fees associated with transferring or withdrawing funds.
Acceptable documentation includes bank statements, exchange platform reports, receipts, contracts, and other records clearly indicating date, amount, and nature of each transaction.
It is insufficient to rely solely on trade history from an exchange dashboard or wallet transaction log. Supporting documents showing fiat (RUB or foreign currency) inflows and outflows are required to substantiate acquisition cost.
Tax return filing and payment deadlines
Individuals calculate PIT independently and file Form 3-NDFL. The general filing deadline is no later than 30 April of the year following the year in which income was received. Tax payment is due no later than 15 July.
For cryptocurrency income earned in 2025:
- the tax return had to be filed no later than 30 April 2026;
- the tax owed had to be paid no later than 15 July 2026.
For transactions conducted in 2026, the return is due in 2027 under standard timing.
Form 3-NDFL and supporting documents can be submitted electronically via the taxpayer’s personal account on the FTS website.
How mining income is taxed
For miners, tax liability arises at the moment they obtain the right to dispose of newly mined cryptocurrency — not only upon subsequent sale.
Income is defined as the market value of the cryptocurrency on the date the miner acquires disposal rights. This is treated as income in kind. If rewards are issued multiple times daily or continuously, income is determined on a daily basis for tax purposes.
Market value is based on the closing price on a foreign trading platform meeting Russian tax law requirements. If the asset trades on several compliant exchanges, the taxpayer may select one source for pricing. 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 official quotations for miners’ income calculation.
PIT rates for miners
Mining income is included in the taxpayer’s aggregate taxable base and taxed according to Russia’s five-tier progressive PIT scale:
- 13% — up to and including RUB 2.4 million;
- 15% — portion from RUB 2.4 million to RUB 5 million;
- 18% — portion from RUB 5 million to RUB 20 million;
- 20% — portion from RUB 20 million to RUB 50 million;
- 22% — portion above RUB 50 million.
These thresholds apply to the taxpayer’s total combined taxable bases — not just mining income alone.
The taxable base may be reduced by documented, actual expenses directly related to mining. Individuals may claim a special property tax deduction; self-employed individuals (IPs) operating under the general taxation system may claim a professional tax deduction.
The FTS confirms that IPs may deduct expenses similarly to corporate profit tax rules — including equipment rental, depreciation, and electricity costs, provided proper documentation exists. If documentation is missing, IPs may apply a default professional deduction equal to 20% of mining-related income.
Tax treatment when selling mined cryptocurrency
Mined cryptocurrency undergoes two distinct tax events:
- Tax is calculated at the time disposal rights arise (i.e., upon receipt of mining rewards).
- Upon subsequent sale, the financial result (gain or loss) is determined separately.
To avoid double taxation, the sale proceeds are reduced by the previously taxed value of the mined asset. Documented expenses related to the sale (e.g., exchange fees) may also be deducted.
Miners must therefore record the market value of each reward on the day it is recognized as income — this figure becomes the cost basis for future sale
FAQ
When does owning cryptocurrency trigger a tax liability in Russia?
Tax liability arises only upon sale or other disposal of cryptocurrency—not from mere holding. Income is taxed on the positive difference between sale proceeds and documented acquisition/disposal expenses.
What PIT rate applies to cryptocurrency sales by individuals?
A two-tier progressive rate applies: 13% on annual taxable income up to RUB 2.4 million, and 15% on the portion exceeding that threshold.
How is mining income taxed?
Mining income is taxed at the time disposal rights arise, based on the market value of the mined cryptocurrency on that date. It’s included in the taxpayer’s total taxable base and subject to Russia’s five-tier progressive PIT scale (13–22%), with allowable deductions for documented mining-related expenses.
