The Romanian Government has Imposed a Tax Rate of 10 Percent on Bitcoin
The Romanian government has imposed a tax rate of 10 percent on Bitcoin investments. The country has reportedly reviewed it’s tax laws and tagged returns derived from transactions using virtual currencies as “income from other sources” in the amended legislation, thus, putting them under an income tax.
The New Tax Law
A local tax consultant, Adrian Benta spoke about the new tax law.
He said that: “Now, the earnings from bitcoin are taxed and declared in the annual income statement. Only the earnings [or gains, as opposed to revenues] are taxed.”
He further stated that:
“Before this, we had a more cumbersome procedure in which one had to register as a freelancer if he was trading repeatedly. It is now treated as an extraordinary income from other sources”
According to the report, the 10% income tax will not be imposed on profit from any transaction below 200 Romanian Ron ( equivalent to about $50), but, as for crypto earnings that are above a total of 600 Ron in 12 months, the tax will apply.
However, it is still unclear how the Romanian government will go about making sure the new crypto income tax is complied with.
Increase in Countries Taxing Cryptocurrency
Cryptocurrency is steadily becoming a cash cow for countries hoping to get profits from a technology created to resist their control. Romania is now one of these countries through its recently deployed crypto tax legislation.
Chile is another country which recently made it known that it will start imposing a tax on Bitcoin profits as from April this year and as for how to enforce compliance, the country said that it will be overseeing every investor in order to ensure that they are paying the crypto tax at the right level.
Also, the Spanish government has written a law which is intended at coercing crypto investors into declaring their crypto assets. Following its vow to monitor and make sure that cryptocurrency investors pay taxes gained from digital currency trading, Spain’s Ministry of Treasury has now identified 15,000 cryptocurrency investors in the country.
