Cryptocurrency Taxation in Russia: How to Declare Income and Pay Taxes
Cryptocurrencies in Russia have been legalized as digital assets since 2020, but their use as a means of payment is prohibited. Despite this, transactions with them are subject to taxation. Here's how to properly account for cryptocurrency income and avoid penalties.
1. Cryptocurrency Status and Tax Base
According to legislation, cryptocurrency is recognized as property. This means that when selling, exchanging, or using it to purchase goods and services, a tax base arises. The obligation to pay personal income tax (PIT) arises in the following cases:
- Selling cryptocurrency for rubles or foreign currency.
- Exchanging one cryptocurrency for another (e.g., Bitcoin for Ethereum).
- Purchasing goods or services with cryptocurrency.
Income is the difference between the sale amount (or market value of the goods/service) and the acquisition costs of the asset. If cryptocurrency was received as a gift or through mining, the entire proceeds are considered income.
2. PIT Rates
- 13% — for tax residents of Russia (individuals present in the country for at least 183 days per year).
- 30% — for non-residents.
If income from cryptocurrency transactions exceeds 5 million rubles per year, an increased rate of 15% applies to the amount above this limit (for residents).
3. How to Declare Income? Step-by-Step Guide
The 3-NDFL declaration must be submitted by April 30 of the year following the reporting year. For example, for 2023 income — by April 30, 2024.
Steps:
1. Gather documents:
- Statements from crypto exchanges or wallets with dates and amounts of transactions.
- Purchase/sale agreements (if available).
- Receipts or other proof of cryptocurrency purchase expenses.
2. Calculate the tax:
Tax = (Income − Expenses) × 13% (or 30%).
If expenses are not documented, tax is paid on the entire income amount.
3. Fill out the declaration:
- Declare income in the "Income outside Russia" section (even if the platform is Russian).
- Enter the amount in the "Other income" field.
4. Pay the tax by July 15.
Important! Losses can be carried forward to future periods, reducing the taxable base, but documentary evidence is required.
4. Calculation Example
Suppose you bought 1 BTC for 1,000,000 rubles and sold it for 1,500,000 rubles.
- Income: 1,500,000 − 1,000,000 = 500,000 rubles.
- Tax: 500,000 × 13% = 65,000 rubles.
If you received the cryptocurrency for free (e.g., as a gift), the tax would be 13% of the entire sale amount.
5. Risks of Non-Payment
- Fine: 20% of the unpaid amount (Article 122 of the Tax Code).
- Penalties: Accrued daily for late payment.
- Criminal liability: For large-scale evasion (from 2.7 million rubles over three years).
6. Tips and Prospects
- Keep records of all transactions: save transaction histories and receipts.
- Use services for automatic tax calculation (e.g., Accointing, CoinTracker).
- Stay updated: the State Duma is discussing a special regime for cryptocurrencies with a reduced rate.
Conclusion
Declaring cryptocurrency income is every investor's responsibility. Ignoring tax code requirements can lead to serious penalties. Account for expenses, submit declarations on time, and consult tax experts for complex transactions. Cryptocurrencies are not just an earning opportunity but also an area of increased responsibility.