What is the tax on cryptocurrencies in Romania
What is the tax on cryptocurrencies in Romania
The interest in digital currencies among users everywhere has grown considerably in recent years and is in continuous growth including in our country. Because this niche is enjoying such strong, rapid and high-speed expansion, questions naturally begin to arise about how this income should or should not be declared, what obligations come with the income, and about the documentation which must be completed to achieve this. Among the most frequent questions are those about how to declare, the amount that is subject to tax and when that income becomes taxable.
Those who live on the territory of Romania are not exempted from paying a tax for the incomes made even when it comes to this category. This happens similarly to other situations, and those who hold coins are forced to obey ANAF, the central authority that manages these matters. Cryptocurrency holders have a guide in PDF format that informs about the regulation of cryptocurrencies and the income generated from them.
Cryptocurrency Tax Law
Law 30/2019 introduced in Romania provisions related to the taxation of income from virtual currency transactions. For this category, the regulations say about the income from the transfer of virtual currency that it falls under the category of income from other sources. Thus, the determination of the income tax and social contributions that apply is done by those who make the income.
The reporting burden remains with users, even for trades made through trading platforms. The current format of the document informs that people who earn income from the transfer of digital currency have the obligation to declare this income by completing and submitting the Single Declaration on income tax and social contributions owed by natural persons. Until May 25 of the current year, the individual has the obligation to provide data on the incomes made to the competent fiscal body for the current year but also estimates for the following year.
How to calculate cryptocurrency tax
You may be wondering how this fee is calculated. This fee is determined as the positive difference between the sale price and the purchase price. The purchase price is determined by taking into account the selling price of the cryptocurrency. Thus a 10% rate is applied on the gain achieved. The moment when the user decides to transfer their income to a bank account should coincide with the moment when the question about the declaration of income is first asked.
Earnings below 200 lei per transaction are not subject to this taxation, but provided that in a fiscal year, the total earnings do not exceed 600 lei. Read More…
