Russian tax authorities imposed an additional charge of 17 million rubles on a miner due to their individual entrepreneur status., 2026/04/23 11:16:08

The Federal Tax Service of Russia (FTS) has imposed an additional tax of 17 million rubles on an entrepreneur from Saint Petersburg after he attempted to declare his mining income as an individual, as reported by the publication “Business FM.”

Entrepreneur Vladislav Mikhalev informed the publication that he was registered as an individual entrepreneur (IE), yet he conducted cryptocurrency mining as a private individual. He adhered to electricity consumption limits (not exceeding 6,000 kWh per month), rented equipment, and executed all transactions under his name, covering expenses from personal accounts and signing contracts as an individual.

“The additional charges will amount to approximately 17 million rubles, which is unfeasible. Such taxes are simply unsustainable for my operations. My income from mining was 181,000 rubles for 2025, and my profit, after deducting electricity costs, was 81,000 rubles. They are asking me to pay tax on a profit of 81,000 rubles, while they are imposing an additional charge of 17 million rubles, which is 209 times greater,” he stated.

The FTS clarified that the status of an IE applies to all types of activities of an individual. Income from mining must be accounted for within the framework of entrepreneurial activity, and taxation should be calculated under the general taxation system (OTS), rather than the simplified taxation system (STS) that the entrepreneur used for another business (children’s furniture manufacturing).

Legal experts noted that this interpretation could be contentious. Mikhail Uspensky, managing director of the consulting agency Parallax, pointed out contradictions in the current regulations. In his view, the automatic application of rules regarding the loss of the right to a simplified taxation system to all entrepreneurs with mining income may be unlawful and requires an assessment of specific circumstances.

Andrey Tugarin, founder of the legal firm GMT Legal, explained that the tax authority’s decision can be contested in court, but the process will be lengthy. According to him, before appealing to the court, one must undergo a desk audit, challenge the decision within the tax service, and only then file a lawsuit.

Previously, the tax service reported that since the implementation of the law regulating cryptocurrency mining, over five thousand miners have legalized their activities. In February 2025, this number barely exceeded six hundred.