2019-01-23]Earnings From Bitcoin are Now Subject to Income Tax in Romania

pixie85

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Quote from: Irvinn on January 24, 2019, 02:08:21 PM

We are still discussing tax laws regarding cryptocurrency in Romania. It is important and the object of taxation, and the size, and the procedure for collecting tax and control over its payment. Ten percent is one of the minimum tax rates. Very good, that introduced a non-taxable minimum. In addition, as we see, it is very difficult for the state to track the payment of such a tax by citizens. Therefore, while hoping for their integrity.

I know it is difficult, but the situation is the same in the other EU countries that require you to pay taxes from crypto transactions like Germany, Switzerland, UK, Poland. All those countries made it clear that your profits from trading are subject to income tax. Wasn't it like this in Romania before?
According to some articles it was.

Quote

For tax purposes, profits made from cryptocurrencies are subject to income or capital gains tax, both at a flat rate of 10% (capped of a maximum of EUR 5,000 per annum). For individuals the profits are included in the personal income tax return. Other than this information and a warning published by Romania’s National Bank in 2015, stating that investing in such currencies involves high risk, there are no clear implications for the regulation of cryptocurrencies for personal use.

https://medium.com/@blockpit/how-are-cryptocurrencies-regulated-in-romania-9b4343067a3e

Romanians used to pay 10% income tax at least since 2015. What did they change exactly this time?

Irvinn

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Quote from: pixie85 on January 24, 2019, 01:49:03 PM

Income tax is a thing in almost every country and in the vast majority of EU countries. I don't see anything important in this Romanian law. They had an income tax before but it was declared in a different way and they also have it now. If you trade crypto for fiat you have to pay but does it change anything for holders? After reading it I think it doesn't. What's the big deal then?

We are still discussing tax laws regarding cryptocurrency in Romania. It is important and the object of taxation, and the size, and the procedure for collecting tax and control over its payment. Ten percent is one of the minimum tax rates. Very good, that introduced a non-taxable minimum. In addition, as we see, it is very difficult for the state to track the payment of such a tax by citizens. Therefore, while hoping for their integrity.

pixie85

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Activity: 2184

Merit: 531

Income tax is a thing in almost every country and in the vast majority of EU countries. I don't see anything important in this Romanian law. They had an income tax before but it was declared in a different way and they also have it now. If you trade crypto for fiat you have to pay but does it change anything for holders? After reading it I think it doesn't. What's the big deal then?

Theb

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Quote from: https://coinidol.com/earnings-from-bitcoin-are-now-subject-to-income-tax-in-romania/

"The tax is 10% per gain and cryptomonas. He is a generous lawmaker, before we had a more cumbersome procedure in which you had to do PFAs if you are trading repeatedly. It is now treated as an extraordinary income fed to other sources," Adrian said.

I think that the news sources are lost in translation here by saying that crypto earnings will be subject to income tax, from what I understand from the quote above crypto earnings will be subject to capital gains tax not income tax as fixed tax rates like these on are usually coming from capital gains tax. Taxpayers earning under 200 Romanian Leu from their crypto earnings won't be subject to the 10% tax only people who are earning above 600 Romanian Leu will be paying the said 10%. Nevertheless of the confusion I think that their new tax requirement is fair as even if you are above 600 RON you are only paying an extra 10% tax from your earnings.

hugeblack

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Is this regulation for taxes or to be included as a future currency?
Many governments impose regulatory regulations to get more free money "taxes" without any rules that prevent scam or initiate cryptocurrency activities.

Generally, we are halfway towards full acceptance.

Ozero

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The legislation in Romania in relation to cryptocurrency is pretty good. The total income tax on cryptocurrency is 10 percent. If a transaction in Bitcoin or another cryptocurrency brings in income of less than 200 lei, it is not worn in the income declaration. Citizens of the declaration of rain for cryptocurrency fill in themselves, it is assumed that the citizen makes information about his income in the cryptocurrency true. Of course, such information is very difficult to verify in practice, so it became necessary to trust its citizens until the opposite is proved. Probably, this will be the common European practice of cryptocurrency taxation.

Vladdirescu87

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Law 30/2019 amending the Fiscal Code became active on Sunday January 20, 2019 and introduces freshness to the system of Romania, viz. classifying the profits accumulated from Bitcoin (BTC), the flagship crypto and other cryptoassets as financial gain accruing over a given period of time from other sources.

The earnings from BTC will be subjected to income tax by the tax authorities.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/earnings-from-bitcoin-are-now-subject-to-income-tax-in-romania/

Topic: 2019-01-23]Earnings From Bitcoin are Now Subject to Income Tax in Romania (Read 166 times)