Crypto Mining Equipment Depreciation in Russia

How is crypto mining equipment depreciated in Russia?

A foreign-owned business should maintain separate Russian statutory and fiscal calculations. The treatment of crypto mining equipment depreciation depends on the recognition unit, initial value, useful life, chosen approach and placed-in-service timing. Where a foreign group conducts mining through a Russian subsidiary, that entity must be included in the official miners' register.

Define the unit of accounting

A site may contain ASICs, GPU rigs, power supplies, cooling units, containers, transformers and network hardware. The first decision is whether these items operate independently or form a single complex.

Under FSBU 6/2020, components with materially different values and operating periods may require separate recognition. This becomes relevant when hashboards, cooling systems or power units are replaced earlier than the main unit.

For corporate profit tax, property is depreciable when it generates income, has a useful life exceeding 12 months and costs more than RUB 100,000. The accounting policy may establish another capitalisation limit for statutory books, creating a discrepancy between the two registers.

Determine the initial cost

The subsidiary should reconcile the supplier contract with customs, transport and installation files. Initial cost may include the purchase price and expenditure required to prepare the hardware for operation.

Direct purchase

Price, delivery, customs charges, installation and testing

Purchase from the parent

Contract value, transfer-pricing support and import documents

Contribution to capital

Approved valuation and ownership transfer

Assembly from components

Parts, labour, configuration and testing

The hardware should not be recorded as a fixed asset merely because it has arrived at the site. The responsible team must confirm that it is configured, connected and ready for operation.

Document the useful life

A two- or three-year term is not automatic for ASICs. The subsidiary should identify the relevant OKOF code and check the government classification of fixed assets.

If the item is absent, Article 258 of the Tax Code allows its useful life to be based on technical specifications or manufacturer recommendations.

For statutory accounts, management also considers expected operating time, physical wear, technological obsolescence, repair policy and restrictions on use. Continuous operation alone does not justify accelerated depreciation.

The depreciation schedule for equipment should show:

inventory number, location, model and serial number;
placed-in-service and retirement dates;
initial value and applicable periods in each register;
method, monthly amount and accumulated balance;
upgrades and component replacements.

Keep statutory and fiscal calculations separate

When depreciating equipment for taxes, the business should not describe the non-linear approach as accelerated depreciation. A special coefficient requires a statutory basis; rapid obsolescence or management preference is insufficient.

Track the hardware after it is put into service

The fixed-asset register should reflect subsequent events:

Repairs and upgrades

Distinguish routine maintenance from modernisation and the replacement of separately recognised components.
Downtime and disposal

Temporary shutdown does not automatically suspend the monthly allocation, while conservation, sale, impairment and retirement require individual assessment.
Headquarters reporting

Reconcile opening value, additions, replacements, accumulated balance and closing carrying amount. Explain variations in recognition timing, useful lives, applied approaches and currency translation.

How we support foreign-owned operators

We help foreign-owned companies establish Russian accounting and profit-tax registers for mining hardware, review acquisition and readiness files, and reconcile local figures with group reporting. We also support compliance for digital-currency operations and prepare reporting packages for headquarters.

Contact us before a site enters operation or its configuration changes so that the recognition unit, key estimates and reporting treatment are documented before the first monthly entry.

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