Crypto Tax Legislation & Law in Romania

The Romanian Tax Code contains provisions regarding taxation of the transfer of virtual currencies; these were introduced in 2019. As regards the taxation of other types of crypto-assets, the general principles provided under the Tax Code will apply. Recently the Romanian tax authority issued guidelines regarding the taxation of income obtained by individuals from the transfer of virtual currencies and non-fungible tokens (NFTs).

Individuals who exchange virtual currencies for USD, EUR, GBP or any other FIAT money must pay income tax at the rate of 10% on the gain obtained. The gain should be determined for each transaction as the difference between the sale price and the acquisition price. Direct costs incurred in relation to the respective transaction can be deducted. Gains below RON 200 (approximately EUR 40) per transaction are exempt from income tax, provided that the total amount of exempt gains in a fiscal year does not exceed RON 600 (approximately EUR 120). In addition, health insurance contribution at the rate of 10% applied on a capped amount will be due if income from the exchange of virtual currencies, together with other types of income other than income from salary (e.g. income for property rental, independent activities, capital income, etc.) obtained during a year, exceed the value of six national minimum gross salaries (in 2023 this threshold is RON 18,000 or approximately EUR 3,600).

The Romanian Tax Code provides that taxable income includes revenue obtained both in cash and in kind. This, correlated with the definition for tax purposes of the term “transfer”, leads to the conclusion that the income obtained by individuals from the exchange of crypto-assets for goods/services or for other crypto-assets is taxable. The principles described in the answer to Q2 above will apply.

The general principles provided under the Romanian Tax Code will apply. According to these, if an individual performs an activity regularly, continuously, on his/her account and with the aim of obtaining income, this will represent a professional activity. As a result, the individual must register to perform this activity as a freelancer or may choose to register a limited liability company. The tax treatment will depend on the form chosen for the performance of professional trading. 

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As per the guidelines issued by the Romanian tax authority, the tax treatment of income obtained from NFTs is as follows:

• if the individual is the creator of the NFT, the income obtained will be considered income from intellectual property and will be subject to income tax determined by applying the 10% tax rate to 60% of gross income. Depending on the level of income obtained during a year, contributions to social insurance and health insurance may also be due
• if the individual is not the creator of the NFT, the applicable tax treatment will depend on the substance of the transaction, i.e. the activity performed would render the category of income defined by the Tax Code, leading to the applicable tax rules and the income tax and contributions owed.

The applicable tax treatment should be determined based on the general principles provided under the Tax Code. Rewards obtained from mining would represent taxable income upon receipt, subject to 10% income tax. Additionally, taxation upon receipt would not eliminate taxation on the sale/exchange of crypto-assets obtained through mining, meaning that the individual would also owe income tax on the gain obtained further to the sale/exchange. If the individual engaged in mining performs this activity on a regular basis, continuously and with the aim of obtaining income, the rules and tax treatment for professional activity would apply.

The answer to Q8 is applicable for staking as well.

As per the general principles provided under the Romanian Tax Code, any income obtained by an individual is subject to tax unless it is listed as an exempt income. As the Romanian tax law does not provide any exemptions for income obtained in relation to activities with crypto-assets, an individual would owe income tax for any income obtained from activities with crypto-assets, such as the ones mentioned in the question.

The general principles and rules regarding declaration of taxes and documentation which are provided in the Romanian Tax Code apply. For example, an individual who owes income tax and health insurance contribution from the exchange of crypto-assets must fill in and submit a tax return by 25 May of the year following that of the income realisation. The same deadline applies for the payment of tax.

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