Crypto taxes: What traders should know

Topic most traders ignore until the tax office calls. Let's be honest.

Important disclaimer

I give basic info based on Russian tax law (as of 2026). This is NOT legal advice. Consult a tax lawyer before acting. Laws change.

Are crypto profits taxed?

Yes, in Russia.

If you made profit from selling crypto, it counts as income and is taxable.

Example:

• Bought BTC for $40,000 at $100
• Sold for $50,000 at $100
• Profit: $10,000
• You owe tax on this $10,000

How is tax calculated?

For individuals (private person)

• Tax rate: 13% (standard income tax, NDFL)
• But there are nuances (below)

For self-employed (entrepreneur)

• Simplified system (USnN "Income"): 6% of income
• Simplified system (USnN "Income minus expenses"): 15% of profit
• General system (OSN): 13% NDFL + pension contributions

For most traders, simplified system is cheaper than individual status.

How are losses counted?

For individuals:

• Subtract losses from profits
• If loss > profit, don't pay tax
• But: Losses don't carry forward (if you're not entrepreneur)

For self-employed:

• Losses carry forward 10 years
• Useful if loss this year, profit next year

When to file?

For individuals

File Tax Declaration (3-NDFL) by April 30 of next year.

Example:

• 2026: You traded, profit $500,000
• By April 30, 2027: File declaration

For self-employed

File Declaration (USnN) by April 30 of next year. Quarterly advance payments (depending on system).

What documents to collect?

1. Trade history — when bought, price, when sold, price
2. Exchange statements (Binance, ByBit, Kraken, etc.) with dates and amounts
3. Exchange rates on trade date (if converted USD to rubles)

Advice: Use apps to track trades:

• CryptoTax (paid)
• Koinly (paid)
• Or your own Excel

How to calculate RUB value of purchase?

If you bought crypto in USD, convert to RUB using CBR (Central Bank Russia) rate on trade date.

Example:

• Date: 15.07.2026
• USD/RUB rate: 90 rubles per dollar
• You bought $1,000 = 90,000 rubles

Tax authority can ask for proof of rate on that date.

Common mistakes

Mistake 1: "I calculate only in crypto, never converted to rubles"

Wrong. Tax is in rubles. Even BTC→ETH trades count as selling BTC for rubles (at CBR rate).

Mistake 2: "I moved money to my card, nobody knows"

Risky. Banks report large transfers to tax office ($600k+ monthly triggers reports). "Where did this come from?" answer "crypto without declaration" = fines.

Mistake 3: "I lost money, so I don't report"

File anyway if you're self-employed (carry losses forward). For individuals, it's not required, but documenting loss helps later.

What to do right now?

Minimum

1. Download trade history from all exchanges
2. Calculate profit/loss
3. If profit > $5,000, consult a tax lawyer
4. If profit > $100,000, definitely consult

Optimal

1. Register as self-employed (tax breaks + loss carryforward)
2. Open business bank account for crypto trades
3. Track in accounting app
4. File declaration yearly

Maximum

Hire tax consultant. If you trade > $1M/year, consultant pays for itself through optimization.

Are there ways to reduce taxes legally?

Legally yes:

• Self-employed status (lower %)
• Recognize losses (if allowed)
• Hold longer (some countries have discounts, Russia changed this)

Illegally:

• Hide income, use fake accounts, cash-out schemes
• Leads to fines, penalties, problems

Legal ways are cheaper.

Summary

• Crypto profits are taxed
• File declaration or face penalties
• Keep records
• At large sums, consult a lawyer
• Self-employed status often better than individual

This is boring, but losing 13% in fines hurts more than paying 13% tax honestly.