The Russian Parliament's upper house passed the 'Cryptocurrency Tax Bill', exempting value-added tax and setting the highest personal income tax rate at 15%.

According to reports, the upper house of the Russian parliament on Wednesday passed a bill proposed by the government to establish a tax framework for digital currencies.

According to the Russian Tax Code, the new law classifies digital currencies, including cryptocurrencies used as payment tools under an experimental legal framework, as property, making Cryptocurrency Mining and sales transactions exempt from value-added tax (VAT), reducing the financial burden on participants in this field.

In addition, corporate income tax will be applicable to Cryptocurrency Mining and sales transactions. When the Cryptocurrency obtained from Mining is recorded in the Miner's wallet at market value, the company is required to pay the corresponding tax.

The maximum personal income tax rate for Cryptocurrency will be limited to 15%, with the majority of taxpayers at 13%, and taxpayers with annual incomes exceeding 24 million rubles will be subject to a 15% rate starting in 2025.

According to the Russian legislative process, a bill needs to go through multiple readings in the State Duma, obtain approval from the Federation Council, and be signed by the President before it can become law. With the expected support of President Putin, the bill will formally establish a detailed tax framework for digital currencies in Russia.

The Russian parliament's upper house has passed the 'Crypto Assets Tax Bill,' which exempts value-added tax and has a maximum personal income tax rate of 15%. This article was first published in 'Blockinquirer'.