Taxation of Cryptocurrencies in Romania
Romania's tax regime for cryptocurrencies is still evolving, but the country has taken steps to clarify the tax treatment of these digital assets. In 2019, the Romanian Tax Code was amended to include provisions specifically addressing cryptocurrencies.
Classification of Cryptocurrencies
Under Romanian law, cryptocurrencies are classified as "other assets" for tax purposes. This means that they are not considered currency, property, or securities. This classification has implications for the tax treatment of cryptocurrency transactions.
Taxation of Cryptocurrency Transactions
The taxation of cryptocurrency transactions in Romania depends on the nature of the transaction.
- Buying and selling cryptocurrencies: Gains from the sale of cryptocurrencies are subject to capital gains tax. The taxable gain is calculated as the difference between the selling price and the acquisition cost of the cryptocurrency. The capital gains tax rate is 10%.
- Mining cryptocurrencies: Mining cryptocurrencies is considered a business activity and is subject to income tax. The income derived from mining activities is included in the taxpayer's total taxable income. The income tax rate for individuals is 10%, while the corporate income tax rate is 16%.
- Using cryptocurrencies to purchase goods or services: Transactions involving the use of cryptocurrencies to purchase goods or services may trigger capital gains tax if the value of the cryptocurrency has increased since acquisition.
Tax Rates
The tax rates applicable to cryptocurrency transactions in Romania are as follows:
- Capital gains tax: 10%
- Income tax: 10% for individuals, 16% for corporations
Exemptions and Deductions
There are no specific exemptions or deductions available for cryptocurrency transactions in Romania. However, general tax deductions and exemptions may apply, such as the personal allowance for individuals or the deductibility of business expenses for corporations.
Legal Framework
The taxation of cryptocurrencies in Romania is governed by the following laws and regulations:
- Tax Code (Law no. 227/2015)
- Government Emergency Ordinance no. 193/2020 amending the Tax Code
- Order no. 3934/2020 of the Ministry of Finance for the application of the provisions of the Tax Code regarding the taxation of virtual currencies
Government Approach
The Romanian government's approach to regulating cryptocurrency taxation is to provide clarity and certainty to taxpayers while also ensuring that the tax system is fair and equitable. The government recognizes the potential of cryptocurrencies and is committed to fostering innovation in this sector.
Conclusion
The taxation of cryptocurrencies in Romania is a complex and evolving area of law. Taxpayers should seek professional advice to ensure that they are complying with all applicable tax laws and regulations.
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