The field of taxation has undergone many changes over the years, and it was clear that it had to evolve in line with social and economic realities, but also in relation to technological developments. One of the recent technological developments concerns the emergence of crypto-currencies, which have revolutionized economic relations between people and have had a significant impact worldwide. Thus, Romanian tax legislation has also required an update in order to regulate cryptocurrency transactions.
Depending on the form of organization and the concrete activity you carry out, the legislation and tax rates are different, but we will capture the hypothesis of individuals trading cryptocurrencies.
În cadrul acestor schimbări accelerate, este esențial să cunoști care sunt obligațiile tale fiscale și noi suntem aici să le expunem într-un limbaj accesibil ție.
Cryptocurrency Taxation in Romania
According to legislative proposals in the European Parliament and Council’s draft Regulation on crypto-asset markets, cryptocurrencies are non-bank virtual currencies that facilitate and secure the transfer of assets through a decentralized system protected by cryptography.
Are you required to pay tax on cryptocurrency income in Romania?
Yes, all income is subject to taxation under Articles 13 and 14 of Law 227/2015, known as the Fiscal Code.
The legal basis for the taxation of the income realized from the economic activity related to cryptocurrency is based on Article 114 lit. m) of the Tax Code, which qualifies this income as “income from other sources”. Thus, this income from other sources will be taxed at a rate of 10%. The 10% tax rate will be applied to the positive difference between the sale price and the purchase price, including the amount representing all direct costs related to the transaction. So, if you bought cryptocurrencies, increased their value and then sold them, you will pay a 10% tax on the difference between the purchase and sale value.
It’s important to note that the fiscal legislation exempts cryptocurrency income from taxation if individual transactions do not exceed 200 lei and the total annual income does not surpass 600 lei, as per Article 116, paragraph (2), letter c) of the Fiscal Code.
Additionally, beyond income tax, the fiscal legislation generally mandates compulsory social contributions to the state.
Compulsory social security contributions are social insurance contributions, i.e. contributions to the public pension system (CAS) and contributions to the social health insurance system (CASS).
Articles 136 and 137 of the Fiscal Code indicate that individuals earning income from cryptocurrency trading are exempt from CAS but are liable for CASS.
They are calculated according to the following ceilings:
- 6 times the gross national minimum wage;
- 12 times the gross national minimum wage;
- 24 times the gross national minimum wage.
Consequently, you will pay health insurance contributions calculated according to the threshold your income exceeds.
In 2024, the income of 12 gross minimum wages per country reaches 39,600 lei. If, for example, the income realized from cryptocurrency transactions would be 43,500 lei then you would fall under the ceiling of 12 gross minimum wages and the amount due would be 3,960 lei.
Tax-Exempt Operations in Romania
Not all cryptocurrency transactions are taxable. Transactions exempt from taxation include:
- Purchasing crypto-assets with lei or euros;
- Holding crypto-assets;
- Transferring crypto-assets between personal wallets.
In relation to donations of cryptocurrencies, the following clarification is necessary. Romanian law does not regulate a tax on donations, except in relation to the donation of real estate and then only in specific cases. Thus, we believe that donations may be exempt from tax, although the National Agency for Fiscal Administration (ANAF) has not confirmed this.
ANAF Declaration for Cryptocurrencies in Romania
After calculating your income tax and health insurance contributions, you must declare them to the National Agency for Fiscal Administration (ANAF).
Cryptocurrencies are declared using the “Single Declaration” (Form 212), which should include income earned in the previous year and estimated income for the current year. The deadline for submitting the single declaration and making the payment is May 25 of the year following the income realization. At this time, taxes for the previous year’s income must be paid, but not for the estimated income.