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Blockchain and digital assets

By Buju, Stanciu & Asociații

Income from NFTs: tax rules and reporting obligations

What are NFTs?

NFTs (Non-Fungible Tokens) are unique digital items that can be bought, sold or traded on the virtual market. They are recorded on a computerised ledger called blockchain, which ensures their unique character.

Income from NFT transactions

Income obtained by individuals from trading NFTs is considered taxable income, regardless of whether it is earned in Romania or abroad. Such income may be received either in cash (as a financial payment) or in kind (products, services, travel, etc.).

Reporting and payment obligations

Individuals who obtain income from trading NFTs are required to declare this income in the Single Tax Return on income tax and social contributions owed by individuals. Content creators who obtain income from the recurring or repeated sale of NFTs (NFT royalties) are also required to declare this income. The reporting and payment obligations are those applicable to income from intellectual property rights, as set out in the Codul Fiscal (Fiscal Code).

Income obtained by individuals trading NFTs

Where income is obtained by individuals trading NFTs, other than content creators who make their creations publicly available for sale, it is necessary to classify the income obtained within the income categories defined by tax legislation and to comply with the rules applicable to reporting such income, as well as to calculating the income tax and social contributions due. Income is deemed to be earned on the date the transaction is carried out (the sale or purchase of the NFT), regardless of when the individual withdraws the funds from the virtual wallet or converts them into a country's traditional currency (FIAT).

To ensure that you comply with the applicable tax and reporting rules for NFT transactions, you can benefit from professional advice provided by our specialists. Our team of experts can provide you with all the information and guidance you need to file the appropriate tax returns and avoid any issues with the tax authorities.