Client’s Story:
"In 2023, we mined about 3 BTC. Everything is stored in a cold wallet.
In 2025, we decided to sell part of it through an exchange and transfer the rubles to the LLC’s bank account.
Our accounting policy is based on the Simplified Tax System (STS) at 6%. But there’s some uncertainty:
- Should cryptocurrency be recorded in the accounting books?
- How should income be calculated — based on the rate at the time of mining or at the time of sale?
- Is there a risk that the tax authorities will reclassify the income as 'business activity outside the scope of STS'?"
This case illustrates a situation faced by many miners operating in a legal gray area. Although mining in Russia received regulatory recognition in 2024, questions of tax and accounting treatment still cause much debate. Let’s break down the key issues.
1. Should cryptocurrency be recorded in the accounting books?
Yes, it must be. Since the organization gains economic benefits in the form of digital currency, cryptocurrency must be reflected in the accounting records. Possible approaches include:
Yes, it must be. Since the organization gains economic benefits in the form of digital currency, cryptocurrency must be reflected in the accounting records. Possible approaches include:
- As finished goods — if mining is part of the core business activity;
- As an intangible asset — a controversial but sometimes used approach.
2. How should income be calculated — by the rate at the time of mining or sale?
The sale of cryptocurrency is an independent taxable event. Income is recognized as the amount received from the sale of the digital asset. The tax base is calculated as:
Revenue from sale – mining costs – selling costs (e.g., exchange commission).
Important: If the cryptocurrency was mined before January 1, 2025, its value can be recognized as part of expenses — specifically as mining expenses accounted for in tax reporting, provided they were not previously included in the calculation of profit tax (clause 6, article 271.1 of the Russian Tax Code).
The sale of cryptocurrency is an independent taxable event. Income is recognized as the amount received from the sale of the digital asset. The tax base is calculated as:
Revenue from sale – mining costs – selling costs (e.g., exchange commission).
Important: If the cryptocurrency was mined before January 1, 2025, its value can be recognized as part of expenses — specifically as mining expenses accounted for in tax reporting, provided they were not previously included in the calculation of profit tax (clause 6, article 271.1 of the Russian Tax Code).
3. Is there a risk of income being reclassified outside the STS?
Yes, there is. According to the Tax Code, STS payers are not allowed to engage in digital currency mining (subparagraph 23, paragraph 3, article 346.12 of the Russian Tax Code).
If mining continues in 2025, the organization is required to switch to the General Tax System (GTS). Otherwise, there's a risk of income reclassification, additional profit tax at 25%, penalties, and fines.
Yes, there is. According to the Tax Code, STS payers are not allowed to engage in digital currency mining (subparagraph 23, paragraph 3, article 346.12 of the Russian Tax Code).
If mining continues in 2025, the organization is required to switch to the General Tax System (GTS). Otherwise, there's a risk of income reclassification, additional profit tax at 25%, penalties, and fines.
What to do in practice?
- Update the accounting policy — include operations with digital assets;
- Track cryptocurrency transactions: date, rate, volume, method of acquisition;
- Upon sale — prepare a complete set of documents: contract (with the exchange or counterparty), act, payment documents, justification of the applied exchange rate;
- Ensure transparency of the crypto assets’ origin — especially for banks.