The Romanian tax authority has amended the country's tax laws to force cryptocurrency traders to pay a ten percent income tax if they generate more than 600 Rumanians annually from their commercial operations, according to a local newspaper, Ziarul Financiar, on January 22, 2019.
Romanian hodlers are now required to pay ten percent tax on encrypted earnings
According to sources close to the development, the Romanian authorities have updated the tax laws of the nation, making it obligatory for bitcoin traders to generate more than 600 million profits annually to transfer a ten percent tax to the revenue agency.
According to the local newspaper, Ziarul Fianciar, a Romanian tax advisor, Adrian Benta has hinted that the new tax code legislation classifies the earnings generated by cryptocurrency trading as "extraordinary income from other sources" and as such they attract an income tax 10%.
Earnings below 200 Ron ($ 50) will not be taxed
Further explaining the new regulation, according to what the tax official says, going forward, the authorities will not tax all the transactions that generate a profit of less than 200 ron per year, but if the trader produces more than 600 romanians as profits 39; year, then the investor must pay ten percent tax.
In line with the new legislation, encrypted traders in the region they are now required by law to declare their bitcoin earnings (earnings) in their annual income statement.
Benta also opined that the new tax regulation is fairer than what it was possible to achieve in the past. In his words:
"In the past, it was harder for cryptocurrency traders, traders had to register as freelancers if they traded regularly, but profits generated by trading are now considered as extraordinary income from other sources."
Authorities working tirelessly to crack down on Crypto tax evaders
Since blockchain technology, bitcoin and other digital assets have begun to achieve constant global traction, tax agencies around the world have become increasingly interested in convincing cryptocurrency investors to tax.
Previously, in October 2018, reports had emerged that the Spanish government had approved a bill to make it mandatory for cryptocurrency investors to have more than $ 57,000 to formally identify and declare the exact amount cryptographic assets they hold, to allow tax authorities to suppress tax evaders.
On 22 January 2019, Guide to Bitcoin exchange reported that a Swedish cryptographic investor had been instructed by the Swedish Tax Agency (STA) to pay $ 1 million in fees after executing 10,000 bitcoin exchanges.