Bitcoin & Crypto Profit Tax: Only Profits from Cryptocurrency Investment will be Taxed
Romania’s improved crypto profit tax is imposed on the earning or gains rather than revenue earned from cryptocurrency investments. From now on the Bitcoin earning (instead of revenue) are needed to be declared in the annual income statement at the time of tax filing.
Reports say the crypto earning that are less than 200 Romanian ron are exept from taxing. The reported 10% Bitcoin and crypto profit tax will be imposed only when the profit earned from cryptocurrency investments exceed a cumulative 600 Romanian ron in a specific tax year.
When interviewed, a local tax consultant named Adrian Benta said:
“Before this, we had a more cumbersome procedure in which one had to register as freelancer if he was trading repeatedly. It is now treated as an extraordinary income from other sources.”
However, it is still not clear how the government officials will ensure compliance enforcement of the self declared Bitcoin and other cryptocurrency profit tax.
Romania is not the only country that is witnessing increased surveillance and targeting from the government. It is happening across the world. Romania is one of those countries that imposed new tax laws on cryptocurrency related incomes. However, experts believe that the newly imposed Bitcoin and crypto profit tax in Romania are improved ones because they consider only the profit and not the revenue for taxation.
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