More and more Romanians are jumping into cryptocurrency and the number of crypto transactions has been rising substantially. But, a less known fact could be that they are not exempt from tax obligations.
When exactly do the gains from the transfer of virtual currency become taxable? And what are the criminal law risks for contributors in case of not complying with financial obligations? How difficult is for authorities to trace these profits? Gabriel Albu, Founder Attorney at Albu Legal Law Office, discussed more on this topic with the journalists from Capital.ro.
- Earnings from transfers of virtual currency are currently included in the category of income from other sources, whose taxable quota is 10% of the positive difference between the sale price and the purchase price.
- The transfer of virtual currency (as a taxable transaction) can materialize in several ways: for example, the conversion from one virtual currency to a conventional currency, the conversion from one virtual currency to another or even the purchase of goods with such currencies. However, given the unregulated nature of these transactions, as well as the access to the electronic wallet, it is pretty difficult for both the taxpayer and the authorities to declare / tax income as long as it it does not become a conventional currency.
- Failure to comply with the obligation to declare earnings and pay taxes may constitute a tax evasion crime, which is punishable by imprisonment from 2 to 8 years, under the conditions of art. 9 par. (1) lit. a) and b) of Law no. 241/2005.