Russia’s Ministry of Finance has issued  guidance letter No. 03-08-13/114723 on 14 March 2025 clarifying the taxation of foreign companies’ income from digital financial assets.

According to the letter, digital financial assets are defined as digital rights related to monetary claims, securities and other assets recorded on distributed ledgers.

The letter states that foreign companies without a permanent presence in Russia are taxed on income from Russian sources, including transactions involving digital assets. It also explains that Russian legal entities, companies with permanent establishments, or individual entrepreneurs must withhold the tax, considering relevant tax treaties.

Thus, income from digital assets by foreign companies is subject to withholding tax in Russia.