Key Points
- The gains obtained by individuals from crypto investment could skip taxes by the end of July.
- If the exemption amendment passes, crypto traders could make profits exempt from taxes.
The latest reports reveal that a new amendment was just introduced in the Romanian Parliament to exempt crypto profits from taxes, until July 31, 2025.
The Draft Law Already Passed the Senate
The new amendment has been reportedly introduced and approved as part of a draft law (including OUG nr.107/2024 for new regulations) that has already passed the Romanian Senate and has one more step to go before it becomes law – the vote in the plenary session of the Chamber of Deputies, the decision-making body.
The exemption on income from crypto transactions would last until July 31, 2025, if approved.
However, it’s important to note that an amendment extending the benefits to other types of income was rejected. These include the following:
- Independent activities
- Intellectual property
- Rent
- Other investments
The extension would have allowed for a tax discount for debtless companies including the ones paying corporate tax and micro-enterprises, as part of a fiscal amnesty context.
However, the parties controlling Parliament could still return to this issue in the plenary session, even deciding to send the draft back to the committee.
Official Details on Crypto Taxes
Article II of the second paragraph in Article 116 of Law no. 227/2015 regarding the Fiscal Code, with added amendments and completions, states the following:
- Individual taxpayers are exempt from paying income tax for income obtained from the difference between earnings from investments in digital assets purchased for resale and the earnings made and collected in crypto until and including July 31, 2025.
Also, Article 116, the second paragraph, letter c) of the Fiscal Code states that in the case of income from transferring crypto, a 10% tax rate is applied. Official notes reveal that the gains from transferring digital assets are determined as the positive difference between the sale price and the purchase price, including direct transaction costs.
Gains below 200 RON/transaction are not taxed, in the case in which the total gains in a fiscal year don’t exceed 600 RON.
The New Measure Could Benefit the State
The new exemption is argued based on potential benefits to the state which could see the real size of this sector, and some funds coming from the sale of digital assets could enter Romania’s banks.
The official argument states that the transitional measure will enhance the transparency regarding crypto transactions carried out by Romanian taxpayers, allowing a real mapping of the crypto market within the economy.
With this temporary measure, investors could transfer their investment earnings to credit institutions in Romania, generating more money flow into the economy.
Also, this legal framework would offer credit institutions confidence for allowing the transfer of these amounts into current accounts, while, eliminating the fear or risk of fraud that is currently present around the matter.
The new amendment to the Fiscal Code comes from the unaffiliated Deputy Sabin Sărmaș who estimated that the money obtained by crypto investors would mostly flow into investments, especially in IT and technology.
He highlighted that Romania has between 500,000 and 600,000 crypto investors and they could bring money into the real economy, during an extremely difficult time in the country.
The new measure exempting crypto traders from paying taxes comes amidst a huge wave of support for the digital asset industry in the US and worldwide, following the elections, which triggered a surge of interest in the industry.
Trump’s victory catapulted Bitcoin to new ATHs in a matter of days, nearing $90,000. The digital asset flipped the total market cap of silver, becoming the 8th largest asset by market cap in the world.
Trump has been a strong supporter of Bitcoin and crypto in 2024, making important promises for the industry, and sending the crypto market cap above $3 trillion, earlier today.
