Federal Law No. 418-FZ is a Russian federal statute that amends the Tax Code and related legislation to establish tax treatment for digital currency mining and transactions. President Vladimir Putin signed the law, and it was officially published, on November 29, 2024. The statute entered into force on publication, while its principal digital-currency tax provisions applied from January 1, 2025. Its official Russian title translates as “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation.”
The law supplies a tax layer for Russia’s broader digital-currency framework. It does not operate as a stand-alone licensing code for exchanges or miners, and it should be read alongside Federal Law No. 259-FZ and the separate mining-registration and reporting measures adopted in 2024.
Key provisions of Federal Law No. 418-FZ
Digital currency as property for tax purposes
The amendments classify digital currency as property under the Russian Tax Code. The definition expressly includes digital currency used as a means of payment under the experimental legal regime for foreign-trade contracts. This classification provides the basis for recognizing mining rewards as income, determining acquisition cost, and calculating gain or loss when digital currency is sold, transferred, or otherwise disposed of.
Mining income and market valuation
For individuals, digital currency obtained through mining is treated as income in kind from a Russian source. Income is recognized when the miner obtains the right to dispose of the asset, including where it is credited directly to another person. The value is determined by a market quotation on that date. Individuals may reduce the relevant base through the property or professional deductions specified by the Tax Code for documented mining-related expenses.
For corporate taxpayers, mined digital currency is classified as non-operating income. Article 282.3 uses a closing price published by a qualifying foreign trading organizer as the market quotation. A qualifying organizer must exceed the statutory daily trading-volume threshold and maintain historical quotation data. Foreign-currency quotations are converted into rubles using the Central Bank of Russia rate applicable on the recognition date.
Sales, transfers, costs, and losses
Corporate digital-currency operations generally form a tax base separate from the taxpayer’s ordinary base. Sale proceeds are measured at the actual price but not below 80% of the market quotation, while acquisition cost is capped at 120% of the market quotation. A gratuitous transfer is valued at the market quotation on the transfer date. Taxpayers may use FIFO or unit-cost accounting for disposed assets. The law bars current tax revaluation and permits prior digital-currency losses to reduce the separate base subject to the Tax Code’s loss limits.
VAT and special tax regimes
Mining operations and sales of digital currency are not treated as objects of value-added tax. That treatment is legally distinct from an ordinary VAT exemption. The statute also provides separate VAT treatment for services supplied by an authorized organization facilitating digital-currency transactions under the experimental foreign-trade regime.
The amendments restrict access to special tax regimes. Mining disqualifies organizations and individual entrepreneurs from the simplified and unified agricultural systems. The patent system, professional-income tax, and automated simplified system are unavailable for mining and, in specified cases, digital-currency sale or acquisition activity.
Reporting, enforcement, and current status
Mining-infrastructure operators must electronically report information about client mining activity to the tax authority every quarter, no later than the 25th day of the following month. Failure to submit the required information on time carries a RUB 40,000 penalty. This operator duty is separate from miner-register and miner-output reporting rules established under other parts of Russia’s mining framework.
The State Duma adopted the law on November 26, 2024, and the Federation Council approved it on November 27. As of June 22, 2026, Federal Law No. 418-FZ is in force. It establishes the tax treatment of digital currency and operates alongside separate rules governing circulation and mining. Readers assessing a particular transaction should consult the current consolidated Tax Code and official Federal Tax Service materials; this profile is informational and is not legal or tax advice.
