Russian Legislator Proposes Taxing Crypto Miners

Russian Legislator Proposes Taxing Crypto Miners

A senior Russian legislator has proposed crypto mining be taxed in the nation but that miners should get a grace period before they actually start to pay the new tax. 

Also see Igloo: A Chat with Edward Tate on His Avalanche Implementation for Tezos

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts

Tax Mining Like an Enterprise, Says Aksakov

“Mining has to be taxed because this is just another type of business,” Anatoly Aksakov, chairman of the committee for financial markets at the State Duma, Russia’s lower chamber of Parliament, was quoted as saying by state-run news agency RIA Novosti.

“Miners are cashing in, and some of them are making good money, so they have to pay taxes,” he went on to say.

Aksakov’s statement comes as the Russian authorities’ first clear expression of its stance on the issue of taxing crypto miners. Earlier, local official were rather vague, saying that the existing tax code covers cryptocurrency mining by default, and no specific stipulations for miners are required.

According to Aksakov, miners still shouldn’t immediately be forced to pay taxes and a two-year grace period should be introduced for them. He didn’t mention what tax rate should be applied to individuals involved in crypto mining, though.

Crypto
Will crypto mining hit the mainstream in Russia?

Currently, private individuals’ salaries are taxed at a 13 percent rate, while those who are registered as individual entrepreneurs enjoy a tax rate as low as 6 percent but are supposed to make contributions to the social security fund. Most likely, crypto miners will have to be registered as individual entrepreneurs and be taxed accordingly.

Still, before any taxation for crypto miners is officially introduced, Russia needs to adopt a set of long-awaited comprehensive laws on crypto regulation. At the moment, cryptocurrencies and crypto mining have no legal definition and therefore can’t be classified as a separate kind of business activity.

Mining Coming Into the Russian Daylight

Meanwhile, local authorities in several Russian regions have voiced support for the idea of crypto mining.

Earlier this year, the country’s westernmost regions, Leningrad Oblast (known best for its main city of St. Petersburg) and the Kaliningrad exclave, separated from mainland Russia by Lithuanian territory, said they were going to officially greenlight cryptocurrency mining.

According to recent reports, the State Duma could consider a set of crypto laws in a second reading before the end of October. To be enacted, the laws would have to go through the third reading, then be passed by the upper chamber of Parliament, the Federation Council, and eventually be signed into law by the president.

The most recent version of the legislation defines crypto mining in a rather broad way, as “activity aimed at creation of digital assets.”

How do you think crypto mining should be taxed in your country? Let us know what you think on Twitter or in the comments section below. 


Images via Pixabay

Related News