Taxation of income from the transfer of virtual currency in Romania

What does the transfer of virtual currency represent and how does it work?

The transfer of virtual currency is an activity involving transactions with virtual money, such as bitcoin or other cryptocurrencies. These transactions may involve the exchange of money for products or services, and the income generated from them is taxable in Romania.

Tax obligations for those who obtain income from the transfer of virtual currency

Individuals who obtain income from the transfer of virtual currency must complete and submit a tax return, declaring the income obtained and paying the corresponding tax. Taxpayers must also take into account the health social insurance contribution if the estimated income exceeds 6 gross minimum wages at national level.

Calculation of income tax on the transfer of virtual currency

Income tax on the transfer of virtual currency is calculated by applying a 10% rate to the gain obtained, determined as the positive difference between the sale price and the purchase price, including the direct costs related to the transaction. Gains below 200 lei/transaction are not taxed, provided that the total gains in a fiscal year do not exceed 600 lei.

How do we declare and pay income tax on the transfer of virtual currency?

In order to declare and pay income tax on the transfer of virtual currency, you must complete and submit a tax return to the tax authorities, by 25 May of the year following the year in which the income was obtained. Taxpayers who obtain income from other sources outside Romania must complete and submit a separate return for income obtained abroad and must take into account the method of avoiding double taxation provided for by the international conventions concluded by Romania. Should you need help or guidance, our tax specialists can provide you with all the information you need to submit the appropriate tax returns and avoid any issues with the tax authorities.