Romania has approved a 10% tax on profits from cryptocurrency trading
The local media inform that Romania has made amendments to tax laws, approving a 10% tax on the profits from the investments in cryptocurrency. In accordance with the new legislation, the income received from the purchase and sale of cryptocurrencies is classified as “the income received from other sources” and, therefore, is subject to the income tax.
“Now the income from the operations with Bitcoin are taxed and reflected in the annual report on the profits and losses. Only incomes or profits are taxed,” the Romanian daily financial newspaper Ziarul Financiar quoted Adrian Benta, the local tax consultant.
It is reported that the profits from one transaction of less than 200 Romanian leu (about $ 50) will not be taxed. However, the investors shall pay a 10% income tax on the profit from the cryptocurrency transactions exceeding 600 Romanian leu per year. Benta expressed the opinion that the cryptocurrency tax thresholds, according to the new legislation, were “fair”.
“Before that, we had a more complicated procedure, in which you had to register as a freelancer if you repeatedly performed the operations with cryptocurrencies. Currently, this income is considered as additional income from other sources.”
In this case, it is not clear in what way the government will ensure compliance with the tax rules for these operations.
In connection with the approaching deadline for the payment of taxes in many countries of the world, the issue of taxation of income from the cryptocurrency operations is increasingly raised. Recently, the Swedish tax agency demanded that a cryptocurrency trader pay a tax on income, but earlier this month it became known that the Chilean traders would pay taxes on cryptocurrency revenues.
Besides, in January, the Bulgarian tax service announced that it will check the cryptocurrency exchanges and their clients. The Danish Tax Authority also stated that it will verify that the citizens pay the taxes on cryptocurrency trading, but the United Kingdom, in the middle of December, issued a tax guide for the cryptocurrency investors.
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