Romania now taxing crypto gains at 10%

Romania now taxing crypto gains at 10%

As of January 20, Romanians have to pay a 10% income tax on fiat profits made from selling cryptocurrencies. Local news outlet Ziarul Financiar reports cryptocurrency profits shall be classified as income from other sources.

Tax consultant Adrian Benta told the publication that the new rule clarified filing procedures, so as not to tax based on gross revenue. Exempted from taxes are profits less than 200 leu (about $48), unless such profits exceed 60 leu ($144) in a year.

According to Benta, prior to the new tax legislation, traders would have had to apply as a freelancer to do repeated trades. Currently, the proper declaration of cryptocurrency earnings is dependent on “good faith.”

Spain, on the other hand, has been drafting legislation that would compel cryptocurrency investors to disclose their holdings, for taxation purposes. Already, the Spanish government has requested user information from cryptocurrency firms to assist in this regard.

In Denmark, tax agency Skattestyrelsen has moved to require cryptocurrency exchanges to reveal user data, after discovering as many as 2,700 Danish traders on exchanges in nearby Finland, whose total trading volume was over $15.35 million.

In France, moves have been made to lower the tax on cryptocurrencies to 30%. Prior to April 2018, the tax was 45%, consisting of a 17.2% “social contributions” and capital gains tax. With the capital gains tax later lowered to 19%, this leaves a 36.2% rate imposed on cryptocurrency holdings. Several more proposals in France’s National Assembly, to raise tax deductions among other things, have so far failed.

Last week, Chile’s Servicio de Impuestos Internos announced the imposition of taxes on cryptocurrency profits, which have been exempt from value-added tax (VAT) payments.

Romania is home to the Coinflux exchange, whose CEO Vlad Nistor was arrested last month based on allegations made by the U.S. government. This caused the exchange to be closed, and their bank accounts to be frozen, therefore locking client funds as well.

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