Romanian Authorities Now Require Bitcoin Traders to Pay a Ten Percent Tax on Earnings
The Romanian tax authority has amended the country’s tax laws to make it mandatory for cryptocurrency traders to pay a ten percent income tax if they generate more than 600 Romanian ron annually from their trading operations, according to a local newspaper, Ziarul Financiar on January 22, 2019.
Romanian Hodlers Now Required To Pay Ten Percent Tax On Crypto Gains
According to sources close to the development, Romanian authorities have updated the nation’s tax laws, making it compulsory for bitcoin traders generating more than 600 ron in profits annually to remit a ten percent tax to the tax agency.
Per the local newspaper, Ziarul Fianciar, a Romanian tax consultant, Adrian Benta has hinted that the new fiscal code legislation categorises earnings generated from cryptocurrency trading as “extraordinary income from other sources,” and as such, they attract a ten percent income tax.
Gains Below 200 Ron ($50) Won’t Be Taxed
Explaining the new regulation further, the tax official reportedly said that going forward, the authorities will not tax all transactions which generate a profit of less than 200 ron per year, but if the trader makes more than 600 Romanian ron as profits annually, then the investor must pay the ten percent tax.
In-line with the new legislation, crypto traders in the region are now required by law to declare their bitcoin earnings (gains) in their annual income statement.
Benta also opined that the new tax regulation is fairer than what was obtainable in the past. In his words:
“In the past, it was a more difficult for cryptocurrency traders. Traders had to register as freelancers if they traded on a regular basis. However, profits generated from trading are now treated as an extraordinary income from other sources.”
Authorities Working Tirelessly To Clamp Down On Crypto Tax Evaders
Since blockchain technology, bitcoin and other digital assets started gaining steady traction globally, tax agencies from most parts of the world have become increasingly interested in getting cryptocurrency investors to remit taxes.
Earlier in October 2018, reports emerged that the Spanish government had approved a draft law aimed at making it compulsory for cryptocurrency investors having more than $57,000 to formally identify themselves and declare the exact amount of crypto assets they hold, to enable the tax authorities clampdown on tax evaders.
On January 22, 2019, Bitcoin Exchange Guide reported that a Swedish crypto investor had been mandated by the Swedish Tax Agency (STA) to pay $1 million in taxes after executing 10,000 bitcoin trades.