Romania Crypto Tax Guide 2024

Not sure how much crypto taxes you owe to tax authorities in Romania? Don’t worry we are here to help you with the most comprehensive Romanian Crypto Tax Guide. We will discuss everything from income tax to capital gains tax on crypto transactions and taxable and non-taxable events. We will also discuss tax-saving strategies and how you can file your crypto taxes. In short, this guide has everything you need to educate yourself on crypto taxes and conveniently file them.

So let’s get started.

Key Data Points

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Latest Updates in Regulations/Guidelines

• April 26, 2023- DGAF conducts anti-fraud controls at the national level in economic areas with poor tax compliance

• April 25 2023- 300 Tax Inspections of large taxpayers

• 03/01/2023- Calendar of financial obligations for the year 2023 

How is Crypto Taxed in Romania?

The Agenția Națională de Administrare Fiscală (ANAF) is yet to release detailed guidance on how cryptocurrencies are taxed in Romania. However, the existing guidelines do mention that crypto is not considered legal tender in Romania, like most other countries and any income/gain incurred from crypto is taxable under the existing income tax rules.

Article 116(1) of Law 227/2015 deals with transactions related to crypto and categorises crypto income as income from alternative sources, and any gains incurred from the same are subjected to a PIT of 10%. Moreover, it states that calculating your gains, taxes, and any social contributions is your responsibility, not that of a business or an exchange.

Whether your transactions incur a capital gain or a profit depends on the nature of the transactions as seen by the ANAF.

Can the ANAF Track Crypto?

Yes, the ANAF can track your crypto transactions owing to the European Anti-Money Laundering Directives that compel crypto exchanges and other businesses operating in the space to record and share customer details with all member European states, and Romania is one of them. Therefore, it has access to your transactions and it can correlate them with your KYC details to identify any discrepancies.

Back in June 2022, the ANAF reported €49 million in collective unreported wealth after an audit performed on 63 investors with over €131 million in gains. The ANAF confirmed that investigators will look into suspicious transactions to identify under-reporting of profits to increase overall compliance with crypto reporting.

Crypto Capital Gains

Selling, swapping, or spending crypto assets is considered as a disposal by the Romanian tax authorities and the gains derived from such disposals are taxed under the existing income tax laws since there is no dedicated capital gains tax in Romania. Note that crypto losses aren't taxable and you can use them to offset your gains and lower your tax bill.

Gains/income from crypto are taxed under the existing income tax rules at 10% PIT for all individual investors.

Example

Suppose Dan bought 3 BTC at €15,000 each and then decided to sell 1 BTC for €20,000, swap another for 10 ETH tokens at an average price of €2,100, and finally decided to buy a premium watch worth €24,000 with the last token a few months later.

So the cost base for every BTC token is €15,000, and therefore disposal of the first BTC attracted a gain of €5,000 (Disposal Amount - Cost Base), the token swap resulted in a gain of €6,000, and finally spending the final BTC on the watch resulted in €9,000.

The collective gain comes out to be €20,000 and with a PIT of 10%, Dan’s tax liability comes out to be €2,000.

How to Calculate Crypto Gains and Losses

As previously mentioned, the ANAF clearly states that the impetus for calculating and reporting individual gains and losses lies with the investors. Therefore, you must be able to calculate your crypto gains and losses yourself.

Here’s how to do that.

The first step is to calculate your cost basis which is essentially the amount you paid to acquire a specific asset inclusive of exchange or network fees if you received it via an exchange. If you’ve acquired the asset from other sources like an Airdrop, the cost basis is simply the fair market value of the asset on receipt.

Once you have your cost basis, you can simply subtract it from the disposal price to calculate your gain or loss on a particular transaction.

Example:

Suppose you receive 5 ETH tokens from an airdrop priced at €1,700 each at the time of receipt. So the cost base for each token would automatically be €1,700. 

And let’s say you decide to dispose of 3 ETH tokens later in the year at an average price of €2,000 per token, the realised gain would be equal to €600 on this transaction (€2,000-1,700).

Crypto Losses 

Any capital losses incurred by investors due to crypto are tax deductible in Romania and you can even carry these losses forward for up to 7 years into the future.

Lost or Stolen Crypto

Many crypto investors have been victims of fraudulent activities in the crypto landscape, hacking incidents, rug pulls, and other deceptive schemes. Just like for other crypto transaction types, the ANAF is yet to provide clear guidance on how lost or stolen cryptocurrencies should be treated in terms of potential capital losses. We suggest contacting an experienced tax accountant if you feel like you can claim a deduction on your lost or stolen crypto.

Crypto Tax Breaks Romania

Since tax authorities in Romania are yet to release guidelines on multiple fronts, the demarcations of crypto taxations are not yet clear, which makes it difficult to identify crypto tax breaks in Romania. However, there are a couple of exemptions within the existing guidelines that you can use to save some taxes.

Gains of less than 200 lei from a single transaction are not taxable, given that your overall income is less than 600 lei/year. Note that if your total earnings from multiple sources is over 12 times the gross national minimum wage (30,600 lei in 2022), you will be required to make social security contributions. The maximum contribution is set at 10% of your taxable income, resulting in a capped amount of 3,060 lei.

Crypto Cost Basis Method Romania

The examples we used so far do not reflect the complexity of real-world crypto transactions. A crypto investor buys the same asset multiple times at different prices, so when it's finally time to dispose of the same assets, determining the cost basis can be a complex affair. That's exactly why investors use specialised accounting methods for cost-basis calculations.

Tax authorities prefer having a predefined method for cost-basis calculations to make sure there are no discrepancies in gain calculation and reporting.

The ANAF has not yet offered explicit guidelines regarding acceptable methods for determining the cost basis of cryptocurrency assets. However, in the case of corporations, methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and ACB (Average Cost Basis) are permissible for income calculations. On the other hand, individual investors who hold shares are allowed to utilise the weighted average cost basis method.

The average cost basis method is pretty straightforward. If you own €30,000 worth of ETH tokens and the number of tokens in your possession is 15. Each ETH token inherits the average cost base of €2,000 (30,000/15). 

Crypto Income Tax Romania

According to the ANAF guidelines, when you receive crypto as compensation or reward for certain activities, then the transaction attracts income tax in Romania. The following transactions are categorised as income tax-bearing transactions:

1. Crypto mining
2. Crypto staking
3. Earning tokens through DeFi protocols
4. Earning tokens through other sources like interact-to-earn platforms

If your income is viewed as additional income by the ANAF, you will first be subjected to an income tax on receipt and a capital gains tax upon disposal.

Crypto Income Tax Rates

Romania doesn’t have a progressive tax structure, they instead have a blanket tax rate of 10% on every transaction called the Personal Income Tax (PIT).

How to Calculate Crypto Income

Calculating your crypto income is a fairly straightforward task. All you need to do is to add the fair market value (in RON) of all the tokens on receipt. And the total amount is what you’ll pay PIT on.

Example:

If you received 10 BTC tokens, 20 ETH tokens, and 15 Polygon tokens from three separate airdrops on three consecutive days. Now assuming the prices of the tokens to be the following on the day of receipt:

BTC- 10,000 RON

ETH- 1,500 RON

Polygon- 1 RON

The total income from the airdrops would be 1,30,015 RON (1,00,000 + 30,000 + 15). 

Tax-Free Crypto Transactions

Not all crypto transactions are taxed. Here’s a list of tax-free transactions in Romania:

• Purchasing crypto using fiat currency (lei or euros).
• Gifting crypto to another individual.
• Transferring crypto between your wallets.
• HODLing your crypto assets

Taxed Crypto Transactions

Here’s when you pay taxes in Romania:

• Selling crypto in exchange for fiat currency (lei or euros).
• Receiving mining and staking rewards
• Exchanging one type of crypto for another.
• Using crypto to make purchases of goods and services.

Tax on Mining Crypto Romania

While the ANAF has not provided explicit guidelines on the taxation of mining, it is anticipated that these rewards will be considered additional income. Therefore, upon receiving mining, you will likely be required to pay Income Tax based on the fair market value (in RON) of the rewards on the day of receipt.

Additionally, if you sell, swap, or spend the rewards obtained through mining, you will be subject to a 10% Personal Income Tax (PIT) on the resulting profits. It is important to account for these tax liabilities when engaging in such transactions involving mined coins or staking rewards.

Tax on Staking Crypto

Similar to mining, ANAF has not provided specific guidelines on the taxation of staking rewards. However, we can infer from the principles applied to crypto mining that staking rewards are likely to be subject to income taxes. It is important to treat these rewards as potential taxable income until the tax authorities offer further clarification.

How are Airdrops and Forks Taxed in Romania

The ANAF is yet to release guidelines on the taxation of income from airdrops and forks. We will be adding it here as soon as new guidelines hit our radar.

Crypto Gifts and Donations Taxes

Although the ANAF has not provided specific guidance on gifting crypto and the potential tax implications. However, considering the existing tax laws on gifting, it is highly probable that gifting crypto or receiving crypto as a gift is exempt from taxation in Romania. However, we do suggest consulting a tax expert on the matter.

Crypto Margin Trading, Futures, and CFDs

The ANAF is yet to release any guidelines on the taxation of gains derived from margin/future trades and derivatives like CFDs. However, we will be looking out for any new guidelines regarding the same and will add relevant details here when it’s available.

Crypto ICO Taxes

The ANAF has yet to provide specific guidelines for ICOs. However, given the nature of ICOs, which involve ownership in newly established crypto projects, and the similarities between tokens obtained from ICOs and those received as staking or mining rewards, it is highly probable that these transactions will be subject to similar tax treatment. 

NFT Taxes Romania

The ANAF is yet to release any guidelines on the taxation of NFTs in Romania. We’ll add all relevant details as soon as we get access to them.

DAO Taxes

Income generated from DAOs can stem from different sources, such as bounties, contribution rewards for contributors, and distributed profits. The ANAF has not yet issued any guidelines regarding the taxation of DAOs. We will closely monitor any new guidelines and promptly update the information here once they become available.

DeFi Crypto Taxes Romania

The ANAF has not yet issued any guidelines regarding the taxation of DeFi (Decentralised Finance) in Romania. Once we obtain access to the relevant information, we will promptly update this guide and add all the details on the taxation of DeFi activities.

When to Report Crypto Taxes in Romania?

The tax year in Romania starts on January 1st and ends on December 31st each year. Taxpayers who earn income from alternative sources, such as crypto, must file their annual tax return by May 25th of the following year.

How to Report Crypto Taxes in Romania

There are two ways to report crypto taxes to ANAF:

1. Offline using Personal Income Tax Return form
2. Online via ANAF Portal

In this tax guide, we will discuss offline mode because it’s the one most people prefer. So here’s how you can report your taxes manually using physical forms. 

1. Download the Personal Income Tax Return form from the ANAF website.
2. Complete the form, including all the information about your crypto transactions.
3. Attach any supporting documentation, such as purchase receipts, mining logs, or staking rewards statements.
4. Sign and date the form.
5. Mail the form to the ANAF address.

Here are some additional tips for filing crypto taxes with the ANAF:

• Keep good records of your crypto transactions. This will make it easier to complete the tax return form.
• Use a crypto tax calculator to help you calculate your capital gains and losses.
• Get help from a tax professional if you need it. A tax professional can help you understand the tax laws and ensure that you file your taxes correctly.

How to File Crypto Taxes Using Kryptos?

Now that you’re aware of how your crypto transactions are taxed and what forms you need to fill out to complete your tax report, here’s a step-wise breakdown of how Kryptos can make this task easier for you:

1. Visit Kryptos and sign up using your email or Google/Apple Account
2. Choose your country, currency, time zone, and accounting method 
3. Import all your transactions from wallets and crypto exchanges
4. Choose your preferred report and click on the generate report option on the left side of your screen and let Kryptos do all the accounting.
5. Once your Tax report is ready, you can download it in PDF format.

If you still have any doubts regarding the integrations or generating your tax reports, you refer to our video guide here.

What Crypto Records Will the ANAF Want?

Given the ANAF's increased scrutiny of crypto investors, it is crucial to maintain thorough records of your crypto transactions to be prepared for potential audits. It is recommended to maintain the following minimum records:

1. Dates of taxable transactions.
2. Specifics of the assets involved in each transaction (including the type of cryptocurrency).
3. The value of the assets (in RON) at the time of each transaction.
4. Details of the parties involved in the transaction (such as wallet addresses) and the purpose of the transaction.

You can opt for a smarter way of record-keeping instead of maintaining these records in the form of a manual ledger. You can simply import all your transactions to Kryptos and let Kryptos maintain the ledger for you.

How to avoid crypto taxes in Romania?

You’re legally required to pay your crypto taxes in Romania, and not doing so may attract legal trouble. However, you can reduce your tax liabilities using the following strategies:

• In Romania, gifting crypto to family members is likely to be tax-free since there is no specific guidance or Gift Tax for crypto. By using this strategy, you can transfer your crypto assets to your family without incurring any tax obligations.

• If the profit you earn from an individual transaction is less than 200 lei, you don’t need to report or pay taxes on that specific transaction. It's important to note, however, that this exemption applies solely if your overall income for the fiscal year is less than 600 lei.

• If your cumulative earnings from alternative sources, such as crypto investments, surpass 12 times the gross national minimum wage (amounting to 30,600 lei in 2022), you will be required to make social security contributions. The maximum contribution is set at 10% of your taxable income, resulting in a capped amount of 3,060 lei.

FAQs

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1. Is Crypto Legal in Romania?

Like most countries, Romanian tax authorities don’t consider crypto to be legal tender. However, this doesn’t mean that you cannot invest in crypto in Romania. You can buy, sell, swap, hold, and spend crypto in Romania as long as you comply with the local tax regulations and pay your taxes on time.

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2. How is Crypto Taxed in Romania?

The Agenția Națională de Administrare Fiscală (ANAF) in Romania has not yet provided detailed guidelines regarding the taxation of cryptocurrencies. However, it is established that cryptocurrencies are not considered legal tender in Romania, similar to other countries. Any income or gains derived from cryptocurrencies are subject to taxation based on the existing income tax rules.

According to Article 116(1) of Law 227/2015, crypto-related transactions are categorised as income from alternative sources. Any gains obtained from these transactions are subject to a capital gains or income tax rate of 10%. It is important to note that the responsibility for calculating gains, taxes, and social contributions lies with the individual, rather than a business or exchange.

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3. How can Kryptos help you in filing your crypto taxes?

We agree that filing your crypto taxes is an unreasonably complicated task, even for someone with a fair amount of prior knowledge. However, there’s an easy way to file your crypto taxes using a crypto tax software called Kryptos.

All you need to do is log in on the platform, add all your trading accounts, wallets, and DeFi accounts and sip coffee while Kryptos does all the heavy lifting. The platform can auto-fetch all your transactions from the tax year and generate a legally compliant tax report within minutes while suggesting ways to lower your tax bill. It works like magic. All you need to do is try it once.

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4. How to Avoid Crypto Taxes in Romania?

Failing to pay crypto taxes in Romania can have serious consequences. However, there are strategies to reduce your tax liabilities:

1. Gifting crypto to family members is likely tax-free since there is no specific guidance or Gift Tax for crypto. This allows you to transfer your crypto assets to your family without attracting tax obligations.

2. If the profit from an individual transaction is less than 200 lei, you are not required to report or pay taxes on that specific transaction. However, this exemption applies only if your overall income for the fiscal year is less than 600 lei.

3. If your cumulative earnings from alternative sources, including crypto investments, exceed 12 times the gross national minimum wage (30,600 lei in 2022), you must make social security contributions. The maximum contribution is 10% of your taxable income, with a cap of 3,060 lei.

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All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!