Russia Legalizes Mining: FTS Introduces Crypto Income in Tax Declaration 3-NDFL

The Federal Tax Service of Russia (FTS) has approved an updated version of the 3-NDFL declaration form for 2025, officially incorporating income from cryptocurrency mining and transactions with digital assets. This decision effectively takes the cryptocurrency mining industry out of the "gray" zone and establishes clear taxation rules for miners and traders.

Key Changes in the 3-NDFL Form

FTS Order № ED-7-11/123@ dated October 20, 2025, introduces special lines for declaring revenue from the sale of mined crypto assets, including Bitcoin and other tokens. Individuals are required to submit the declaration by April 30 and pay the tax by July 15 of the following year. Mining pool participants must provide reports on mined currency by the 20th of the month following the reporting month.

Taxation: Rates and Benefits

Income from mining is taxed at a progressive rate: 13% — up to 2.4 million rubles, 15% — from 2.4 to 5 million, up to 22% — over 50 million rubles per year. For individual entrepreneurs and legal entities, a profit tax rate of 20% applies. Mining operations are exempt from VAT, reducing operating costs and making the industry more attractive.

Market Impact

Russia, with 11% of the global Bitcoin hash rate due to affordable electricity and climate, has the opportunity to attract up to $2 billion in infrastructure investment by 2027. Legalization eliminates the risk of equipment confiscation and creates conditions for the development of a regulated crypto market. However, miners are advised to keep accurate records of electricity and equipment expenses to minimize tax burdens and avoid fines of up to 40% of the unpaid amount.