Taxation of Income from Cryptocurrency Transactions in the Russian Federation
Income earned by individuals who are tax residents of the Russian Federation from cryptocurrency transactions is subject to personal income tax (PIT).
Who is considered a tax resident?
Individuals who physically reside in the Russian Federation for at least 183 calendar days within any consecutive 12-month period are considered tax residents.
How is the tax base calculated?
PIT is applied to the difference between the income received in monetary form from the sale of cryptocurrency and the expenses that can be documented.
These expenses include the initial purchase cost of the cryptocurrency, as well as platform and bank commissions and fees. Expenses can be confirmed by account statements from crypto platforms and bank accounts.
These expenses include the initial purchase cost of the cryptocurrency, as well as platform and bank commissions and fees. Expenses can be confirmed by account statements from crypto platforms and bank accounts.
What tax rate applies to such income?
The general PIT rate is 13%.
Progressive rates of 15%, 18%, 20%, and 22% apply if the annual income exceeds thresholds of 2.4 million, 5 million, 20 million, and 50 million rubles respectively.
Progressive rates of 15%, 18%, 20%, and 22% apply if the annual income exceeds thresholds of 2.4 million, 5 million, 20 million, and 50 million rubles respectively.
Is it necessary to file a tax return, and how to do it?
In Russia, the tax return must be filed no later than April 30 of the year following the reporting year. The tax return should be submitted to the tax authority (Federal Tax Service office) at the individual's place of residence.
The tax calculated based on the return must be paid no later than July 15 of the year following the reporting year.