Romania has approved a 10% tax on profits from cryptocurrency trading

[XMLGold.eu]

The local media inform that Romania has made amendments to tax laws, approving a 10% tax on the profits from the investments in cryptocurrency.
Read more: https://www.xmlgold.eu/en/news/article/798/romania-tax-cryptocurrency-trading/

[el kaka22]

The local media inform that Romania has made amendments to tax laws, approving a 10% tax on the profits from the investments in cryptocurrency.
Read more: https://www.xmlgold.eu/en/news/article/798/romania-tax-cryptocurrency-trading/

Is it just trading or possession? I mean what if someone sells a product and gets crypto in return? Do we know what happens to those people? Are they not taxed? Are they taxed the same way they would if they sold it for fiat currency? What about the freelancers? They do not even sell anything, they provide a service and they get paid?

It is great that countries are making laws for crypto, it makes the crypto world a lot more legit however we need the laws to be more precise and more comprehensive, this just concludes one part of the crypto world which is trading but it leaves out a bunch of other stuff unanswered and without that people could be taking advantage of these things. Looking at the USA example the countries that tax the trading depend on the exchanges and the information they give but it takes just one bad exchange to make the trust go away.

[Vaskiy]

The local media inform that Romania has made amendments to tax laws, approving a 10% tax on the profits from the investments in cryptocurrency.
Read more: https://www.xmlgold.eu/en/news/article/798/romania-tax-cryptocurrency-trading/

Is it just trading or possession? I mean what if someone sells a product and gets crypto in return? Do we know what happens to those people? Are they not taxed? Are they taxed the same way they would if they sold it for fiat currency? What about the freelancers? They do not even sell anything, they provide a service and they get paid?

It is great that countries are making laws for crypto, it makes the crypto world a lot more legit however we need the laws to be more precise and more comprehensive, this just concludes one part of the crypto world which is trading but it leaves out a bunch of other stuff unanswered and without that people could be taking advantage of these things. Looking at the USA example the countries that tax the trading depend on the exchanges and the information they give but it takes just one bad exchange to make the trust go away.

Well, there are users who use cryptocurrencies not only for trading. In this way it isn't that possible to predict the trade volume or the transacted volume of an user without the support of the exchanges. USA has got the data from the exchanges and levy taxes according to the data. Another thing, there are more exchanges that let us to do trade anonymously.

[NeuroticFish]

Is it just trading or possession? I mean what if someone sells a product and gets crypto in return?

It's an income tax and it's for when one sells crypto for money.

It doesn't matter you bought one Bitcoin for 20000$ or for 1$, if you sell it they want 10% of the money you received (preev tells now 3438$) as tax.
I don't expect many individuals will do this; it's just one more of the stupid laws my country started to get in the last 2 years at an accelerated rate.

[bitmedia]

How are they able to monitor profits ?
For example, investor trades on Binance and then exchange crypto on fiat at localbitcoins. How government will control it?
As to legit payments and transactions, on the one hand it is an advantage that Romania accepts crypto and Blockchain technology. On the other hand, they limit traders and investors. What do you think about it?

[dothebeats]

How are they able to monitor profits ?
For example, investor trades on Binance and then exchange crypto on fiat at localbitcoins. How government will control it?
As to legit payments and transactions, on the one hand it is an advantage that Romania accepts crypto and Blockchain technology. On the other hand, they limit traders and investors. What do you think about it?

They would collaborate with such organizations, of course. The governments always have the power to seek records even on private institutions if they so do wish, provided that they have given the rights to do so. I wouldn't be surprised if Romanian cryptoexchanges add this to their ToS after the approval of the 10% tax on profits from trading. This is bound to happen on other countries too, perhaps not on capital gains but on other aspects they see bitcoin and crypto being taxed.

[jrrsparkles]

Is it just trading or possession? I mean what if someone sells a product and gets crypto in return?

It's an income tax and it's for when one sells crypto for money.

It doesn't matter you bought one Bitcoin for 20000$ or for 1$, if you sell it they want 10% of the money you received (preev tells now 3438$) as tax.
I don't expect many individuals will do this; it's just one more of the stupid laws my country started to get in the last 2 years at an accelerated rate.

Paying income tax to something which are in already heavy loss will hurts more.

But I don't think anyone will pay their right amount of tax to the governements because even they can't the fiat transaction exactly then it is going to be a heavy load for them to track so people filing the taxes will get accepted as it is right?

[tinker123]

Again, the government in haste enacts laws. How are they going to control it? Such an opportunity, as I understand it, no. Or will they force exchangers to cooperate?

[MTVuser07]

Perhaps on local exchangers there will be an automatic commission withdrawal. Who knows how they implement it. But the government will not just leave the money.

[kryptqnick]

The local media inform that Romania has made amendments to tax laws, approving a 10% tax on the profits from the investments in cryptocurrency.
Read more: https://www.xmlgold.eu/en/news/article/798/romania-tax-cryptocurrency-trading/

This is interesting news, thanks! Compared to other countries that already imposed taxes on cryptos, this rate is relatively low (if, of course, there are no additional VAT or capital gains taxes). At the same time, though, I like the progressive income tax systems more. Take Singapore, for instance. If your annual personal income is less than $20k, your income tax is at 0%! If you earn the hell lot, though, you have to pay way more than 10%, but I think it's completely fair. My country hasn't decided on taxation of cryptos yet, but if my annual profit is, say, $3k in btc, then paying $300 is a really significant part of it, while if one's income is $20k, I don't think that those $2k matter in the same way.

[LeGaulois]

Again, the government in haste enacts laws. How are they going to control it? Such an opportunity, as I understand it, no. Or will they force exchangers to cooperate?

The taxes reports are basically based on trust. You report your income and they believe you are not lying. They have several ways to control it, like they can control your salaries. But once they figure out you cheated be sure they won't forget you.
Some banks accounts owned by exchanges are well known, more countries are also using big data

[Crypdon]

These guys are smart, anyone who nuys now is going to make massive gains in the next two years from the bitcoin halving and etfs. If they don't tax it, they will miss out on millions in capital gains

[BestSSS]

Well, if you look at the potential profit that can be obtained from trading cryptocurrencies in this market, the official 10% income tax - I think a very good solution.
Earning 100% of $ 1000 to give the government $ 100 is not so expensive, but you can live in peace and not worry that you will come!.

[adzino]

How are they able to monitor profits ?
For example, investor trades on Binance and then exchange crypto on fiat at localbitcoins. How government will control it?
As to legit payments and transactions, on the one hand it is an advantage that Romania accepts crypto and Blockchain technology. On the other hand, they limit traders and investors. What do you think about it?

Probably will restrict exchange usage slowly. Might force people to use only their local exchange. Will add some KYC bullshits to keep track of the users activity and impose the required taxes. In other words, they will just start to put in as much regulations possible to keep everything under the eyes of the government.

[aoluain]

10% tax on profits is actually quite light, in my country its 33%
as taxes go 10% is reasonable.
Possession of crypto cannot be taxed, not on a decentralised
currency.

[timerland]

Is it just trading or possession? I mean what if someone sells a product and gets crypto in return?

It's an income tax and it's for when one sells crypto for money.

It doesn't matter you bought one Bitcoin for 20000$ or for 1$, if you sell it they want 10% of the money you received (preev tells now 3438$) as tax.
I don't expect many individuals will do this; it's just one more of the stupid laws my country started to get in the last 2 years at an accelerated rate.

I read it differently. It says in the article that

Only incomes or profits are taxed

Which means that you'd only get taxed if you do make a profit on your bitcoin in comparison to when you bought it initially.

If you do make a loss then it won't count as taxable, from what I can gather from the article above. In certain countries you might even be able to claim that as a deduction, but not sure about Romania.

That isn't actually too bad compared to a lot of countries worldwide where CGT is a lot higher. Though, I'm not sure if Romania will have special rules in regards to the use of bitcoin as a currency to buy goods (i.e. if you use bitcoins you bought a while back to buy something online when bitcoin has risen, will that also be taxable?) or not.

[trader34]

10% of taxation on capital gains it's not that high. In my country, it's much higher. You pay that tax and then you are free to legally convert your gains in fiat and use your money as you want, while we wait to use directly bitcoin as a currency to buy goods and services in the future. It's not that bad.

[yusupjatigumilar]

The tax implementation of crypto currencies with this method is indeed quite good because it is only applied to those who gain profits above $ 50 , but I think before the government implemented this the government must be able to increase the interest of the community to trade in this commodity because the application of taxes is not there will be a maximum of only a few people investing and trading on the market.

[wahyu wida]

10% of taxation on capital gains it's not that high. In my country, it's much higher. You pay that tax and then you are free to legally convert your gains in fiat and use your money as you want, while we wait to use directly bitcoin as a currency to buy goods and services in the future. It's not that bad.

I think the 10% tax is not big, and later we also feel the benefits of the tax. because taxes are used to build the country. but to see crypto as a global currency, I think it still needs a long journey

[Jating]

At least this is recognition by the Romanian government that crypto or anything related to crypto is here to stay so they might as well tax them for revenue purposes.

Yeah, 10% for you is not that big. As compare to other state crypto backup currencies such as crypto rubble who have been reported to be tax by more than 30% if I'm not mistaken.

So it's a fair trade and I'm sure Romanian crypto enthusiast will be happy of these developments.